03/20/2026
Bank statements alone do not substantiate your deductions. They show that a transaction happened, but they do not explain the business purpose behind it.
Here is what proper documentation actually looks like:
- Mileage logs with the date, destination, business purpose, and miles driven
- Asset purchase records showing the invoice, in service date, and business use percentage
- Payroll reports, filed tax forms, and proof that payments were made
- Meal receipts that show the date, total, and clear business purpose
- Home office records that prove exclusive use and accurate square footage
Clean books are step one. Solid documentation is step two.
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