What Receipts to Keep for Business Expenses

What the IRS means by adequate records

Publication 463 asks for two things together. The first is a record you keep yourself: an account book, diary, log, statement of expense, trip sheet or a similar record, on paper or on a computer. The second is documentary evidence, such as receipts, canceled checks or bills, that supports the entries. You should record each expense at or near the time it happens. You do not have to write it down the same day; a weekly log can count as timely. What does not count is an estimate made later, since approximated amounts cannot be deducted.

What a receipt has to show

Documentary evidence generally has to show the amount, the date, the place and the essential character of the expense. Publication 463 gives two examples of what that means.

• Hotel receipt: the name and location of the hotel, the dates you stayed, and separate amounts for lodging, meals, telephone calls and other charges.
• Restaurant receipt: the name and location of the restaurant, the number of people served, and the date and amount. Charges for items other than food should be identified as such.

A canceled check together with the payee's bill ordinarily establishes the cost. A canceled check on its own does not prove a business expense, because it says nothing about the business purpose. The same goes for a card statement: Publication 583 accepts an account statement as proof of payment, but adds that proof of payment alone does not support a deduction.

The under-$75 rule

For travel, gift and transportation expenses, Publication 463 says documentary evidence is not needed in three cases: when an expense, other than lodging, is less than $75; when a transportation expense has no receipt readily available; and when meals or lodging are covered by a per diem allowance under an accountable plan. The rule removes the need for the paper, not the need for the record. You still log the amount, the date, the place and the business purpose.

4 of these 8 need a receipt. The hotel needs one even at $68, because lodging is never covered by the exception. The parking fee and the lunch do not, but each still needs a log entry. Keeping the receipt anyway is the easy way to have the date, place and amount in one place.

The $75 rule is part of the travel, gift and car rules. For other business expenses, such as supplies, software or rent, Publication 583 asks you to keep supporting documents: sales slips, paid bills, invoices, receipts, deposit slips and canceled checks, showing the amount paid and that it was for the business.

What to record for travel, gifts and transportation

For a car, the mileage log is the record. The mileage reimbursement calculator turns logged business miles into an amount at a per-mile rate, and the IRS mileage rate guide has the current rate. Meals have their own deduction limits, covered in the business meal deduction.

Gifts: keep the receipt, deduct at most $25

A business gift has a separate cap. Publication 463 lets you deduct no more than $25 for business gifts you give directly or indirectly to each person during the tax year. A $40 gift to one client is under $75, so it needs a log entry but no receipt, and only $25 of it is deductible. Incidental costs such as engraving, packaging, insuring and mailing generally do not count toward the $25, as long as they do not add substantial value to the gift.

Digital copies

You do not have to keep a box of paper. Publication 583 says electronic storage systems are subject to the same requirements as paper records: they must index, store, preserve, retrieve and reproduce the records legibly and give the IRS complete and accurate data. You may destroy the paper originals only after the system has been tested and you have procedures that keep it compliant. For the technical requirements, the publication points to Revenue Procedure 97-22.

In practice that means a legible, complete image of every receipt, stored in a way you can search by year and type. Scan to PDF turns a phone photo of a receipt into a straightened, readable PDF page. If you sell, the receipt generator and the invoice generator make documents for your customers that show the date, the items and the amount.

How long to keep them

Publication 463 says to keep the records that support a deduction for 3 years from the date you file the return that claims it, and a return filed early counts as filed on its due date. A return filed on June 1, 2027 under an extension means keeping the receipts until at least June 1, 2030. Publication 583 lists the longer periods:

The full timeline, including what to do before you shred anything, is in how long to keep tax records. If a fire, flood or other cause beyond your control destroys your receipts, Publication 463 says you can reconstruct your records.

Frequently asked questions

Sources

• IRS Publication 463 (2025), Travel, Gift, and Car Expenses (chapter 5: adequate records, documentary evidence, the under-$75 rule, hotel and restaurant receipts, canceled checks, timely records, 3 years from filing; chapter 3: the $25 gift limit and incidental costs)
• IRS Publication 583 (12/2024), Starting a Business and Keeping Records (supporting documents, proof of payment, electronic storage and Rev. Proc. 97-22, how long to keep records)

General information based on the sources above, not tax, legal or financial advice.

Written by Tobias. Updated November 2, 2026.