For the year of 2017, this would be my first time trying to write off tools I have purchased for work. If I understand the fine print, you can only claim anything after 2% of your AGI. I believe I have surpassed my own 2% of my AGI which is why I am trying to add expenses and assets to increase my tax return. Most of the tools I bought, I do not have the receipts for, however I do have bank statements showing the cost value of the tools. It does not show specific detail of each tool I bought but there is a description of where the tool came from. Can I still claim these tools or is it wise to not claim them considering I lack the receipts and if I get audited, I do not have proof of description for the tools I am trying to claim.
Yes, you are correct - the IRS accepts only certain types of evidence for job-related expenses. Your bank statement prove that you paid money to certain vendors, but not exactly what was purchased.
According to the IRS: "You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses."
Basically, your evidence needs to show the amount, date, place, and "essential character" of the expense. If your bank statements include images of cancelled checks, that would be sufficient proof.
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