Start with your situation
When buying equipment or paying for a shared service, record how it is used. Give uncertain items to your preparer as questions instead of placing everything into a broad business category.
A business connection needs support
Not every payment connected with work has the same tax treatment. The nature of the expense, business purpose, records, and applicable rules matter. Mixed personal and business spending needs careful review. IRS recordkeeping guidance explains the need to substantiate return entries; a category in bookkeeping software does not establish that an expense is deductible.
Keep the explanation beside the receipt
Record the date, vendor, amount, business purpose, and any personal-use element. Keep invoices or other supporting evidence, not just a credit-card total. Mark uncertain classifications for a qualified preparer rather than selecting the category that produces the largest deduction. When records are missing, document what is available and ask how to handle the gap honestly.
- Capture business purpose
- Separate personal-use portions
- Flag uncertain treatment for review
Questions to consider
Does a credit-card charge prove a deduction?
It may show payment, but more information can be needed to establish the expense's nature and tax treatment.
Official resources
This guide provides general information. It does not assess your eligibility, establish representation or guarantee an outcome. Check current agency guidance and get advice based on your own facts.