I started a new radio show on KAFM 88.1! It's called "KAFM Money Tips" and will air the third Thursday of the month at 12:15 pm. Tune in at 88.1 fm if you're in the Grand Valley or www.kafmradio.org/radio-player if you're anywhere else. Here is a recording of my pilot show, which aired last week. Kim Last was my guest.
Tax Savings Tips: April 2023
Know the $75 Rule for Business Expenses The $75 rule applies to certain business expenses where you do not need a receipt. But we emphasize that this rule does not apply to all tax deductions. Many taxpayers mistakenly apply the $75 rule to all their tax deductions, which can result in a significant loss of deductions and penalties. We encourage you to know the $75 rule and its limitations to avoid potential negative consequences. IRS Reg. Section 1.274-5(c)(2)(iii) contains the $75 rule, and Notice 95-50 provides a clear explanation of what it applies to. The rule applies to business travel expenses, vehicle expenses, and gifts that cost less than $75. But remember that the $25 limit on deductions for business gifts applies, meaning the practical limit is $25. It’s worth noting that your bank and credit card statements do not provide sufficient proof of expenses for tax purposes. You need to have both the receipt (proof of what you purchased) and the canceled
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