Hey everyone,
I have some questions that I hope can be answered, as they are extremely important in maintaining a good will with the IRS.
First, some background info. My business partner and I formed a general partnership while in college about 1.5 years ago now, which at first was more or less a hobby to print t-shirts for various organizations, campus clubs, businesses, etc. From the get go, we've been 100% legitimate in the eyes of the IRS, as we have all the proper licenses that go along with operating a business. Due to being extremely busy with school and the operating the business, we didn't pay as close of attention on deductions. Here are my questions:
1) In many cases, we drove 30 or more miles to deliver merchandise, however we failed to keep receipts. We do have bank records of gas purchased on with the business check card. Can we still deduct a portion of gas used for business purposes?
2) Throughout the early stages of business, we would withdraw cash for living expenses on an irregular basis and was wondering how we would go about recording that. Would this just be recorded under each of our individual incomes?
3) Since 1/3 of our house is used for business operations, what kind of documentation do you need for tax purposes? Are receipts from the landlord good enough? What if we do not have a receipt for every month? Like say we just got a general receipt for one years lease, would that be fine?
I appreciate all your help!
I have some questions that I hope can be answered, as they are extremely important in maintaining a good will with the IRS.
First, some background info. My business partner and I formed a general partnership while in college about 1.5 years ago now, which at first was more or less a hobby to print t-shirts for various organizations, campus clubs, businesses, etc. From the get go, we've been 100% legitimate in the eyes of the IRS, as we have all the proper licenses that go along with operating a business. Due to being extremely busy with school and the operating the business, we didn't pay as close of attention on deductions. Here are my questions:
1) In many cases, we drove 30 or more miles to deliver merchandise, however we failed to keep receipts. We do have bank records of gas purchased on with the business check card. Can we still deduct a portion of gas used for business purposes?
2) Throughout the early stages of business, we would withdraw cash for living expenses on an irregular basis and was wondering how we would go about recording that. Would this just be recorded under each of our individual incomes?
3) Since 1/3 of our house is used for business operations, what kind of documentation do you need for tax purposes? Are receipts from the landlord good enough? What if we do not have a receipt for every month? Like say we just got a general receipt for one years lease, would that be fine?
I appreciate all your help!