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Updated almost 4 years ago on . Most recent reply presented by

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Arpan Solanki
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I don't have receipts of expenses for tax filing

Arpan Solanki
Posted

I do not have receipts for amount paid to contractors for fixing things. Just Zelle Transactions. Is that enough?

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied
Originally posted by @Christopher Smith:

IRS internal training guides are not law of course.

But the court cases are. In multiple cases, the Tax Court said that you cannot deduct ballpark estimates, and Cohan does not give you such blank check. In fact, Cohan is limited in its scope, as @Greg O'Brien already stated. Despite what the gurus love to proclaim. 

To the original question: Zelle confirmations are acceptable in an audit, as long as you also maintain a log or a spreadsheet or some other detailed record that documents for each Zelle payment:

  1. Date
  2. Amount
  3. Recipient (who it was paid to)
  4. Purpose (what exactly was it paid for)
  5. Specific project or property

Create such log / spreadsheet asap, while you still remember most of this information.

  • Michael Plaks
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