2011 Virginia Legislators' Tax Guide: Recordkeeping for Travel
The following table is a summary of records you need to prove for travel expenses. You must be able to prove the elements listed in the first column of the chart. You prove them by having the information and receipts (where needed) for the expenses listed across the top portion of the chart.
Note: You cannot deduct amounts that you approximate or estimate.
You should keep the proof you need in an account book, diary, log, statement of expense, trip sheet or similar record. You should also keep documentary evidence (such as receipts, canceled checks, or bills) that, together with your record, will support each element of an expense.
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Elements to be
substantiated
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For expenditures for use of automobiles
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For expenditures for travel away from home
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For expenditures for entertainment
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For expenditures for gifts
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Amount
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Amount of each expenditure related to the operation of the automobile including depreciation, insurance, fuel and repairs. |
Amount of each separate expenditure for transportation, lodging and meals. Permissible to total incidental expenses in reasonable categories, such as gasoline and oil, taxis, daily meals for travelers, etc. |
Amount of each expenditure. Incidental items, such as taxis, telephone, etc., may be totaled on a daily basis.
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Cost of gift.
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Date
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Date of business use of the automobile. |
Dates of departure and return for each trip and number of days attributable to business activities. |
Date of entertainment or use of a facility for entertainment. (Duration of business discussion.) |
Date of gift.
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Place
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Destination and mileage. Unless the standard mileage rate is used, must also keep a record of the total mileage (business and personal) so expenses can be allocated to business use at year end.
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Destination by name of city or other appropriate designation. |
Name and address or similar designation of place of entertainment,
or place of use of a facility in connection with entertainment. Type of entertainment if not otherwise apparent. (Place of business discussion.) |
Not applicable.
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Description
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Not applicable.
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Not applicable.
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Not applicable. |
Description of gift. |
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Business purpose
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Business reason for automobile use.
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Business reason for travel or nature of business benefit derived or expected to be derived.
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Business reason or nature of business benefit derived or expected to be derived, including nature of business discussion or activity. |
Business reason for making the gift or nature of business benefit derived or expected to be derived. |
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Business relationship
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Not applicable.
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Not applicable.
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Occupation or other information – such as names or other designation – about persons entertained which establishes their business relationship to the taxpayer. (Identification of persons entertained who participated in business discussion.)
Proof of the presence of you or your employee, if the entertainment was a business meal.
Record of the persons who participated in both the
business discussion and the entertainment activity, if
the entertainment took place before or after a substantial and bona fide business discussion.
Record of the group's identification, if entertaining a readily identifiable group of people.
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Occupation or other information – such as name or other designation – about recipient which establishes business relationship to taxpayer.
Record of the name of each recipient of a business gift, if the amount of the gift to such recipient
exceeded the $25 annual limit.
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