A Welcome Irs Change

Say goodbye to that file full of restaurant receipts. The Internal Revenue Service has raised the level for required documentation of food, travel, and entertainment expenses from $25 to $75. That means you no longer need to save the receipt from every single business engagement. For expenses that are under $75, a less formal record, such as an entry on a business calendar, should suffice. The new rule, which took effect on Jan. 26, marks the first time that the level has been raised in more than a decade and should be welcome news for owners of small and home-based businesses that do the bulk of their deals someplace other than the office. See you at the steakhouse.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.