Receipts & Records
Keeping the right records is what turns a deductible expense into a deduction that survives an audit. This guide covers which expenses need a receipt, which need a log, and how long to keep everything.
01Which expenses need a receipt
Most business expenses need a receipt or invoice that shows the date, the vendor, the amount, and what was bought. Larger purchases, travel, and meals need more detail.
For smaller expenses, a bank or credit card statement may be enough, but the IRS can still ask for the actual receipt. Keep both when you can.
02Which need a log or written record
Some deductions need more than a receipt. Vehicle use requires a mileage log. Home office and mixed-use assets need a business-use percentage. Meals and travel need a written record of the business purpose and who was involved.
The IRS calls this a contemporaneous record, one made at or near the time of the expense, not reconstructed later.
03How long to keep them
Keep most records for at least three years from the date you filed the return. Keep them longer if you underreported income by a significant amount (six years), or if you filed a fraudulent return or didn't file one (keep indefinitely).
Keep employment tax records for at least four years. Asset and depreciation records should be kept for as long as you own the asset, plus the recordkeeping period after you sell it. See Publication 583 for the full schedule.
Records checklist
A summary of every record mentioned on this page. Keep these with your tax return.
- Receipts and invoicesDate, vendor, amount, and item for every deductible purchase.
- Mileage logContemporaneous record of business miles.
- Written recordsBusiness purpose and attendees for meals, travel, and entertainment.
- Asset and depreciation recordsPurchase documents and depreciation schedules, kept for the asset's life plus the retention period.
- Retention scheduleThree years minimum, longer for underreported income, assets, and employment taxes.
Go deeper on the rules behind these deductions
Educational guidance only, not tax advice. Talk to a tax professional about your situation.