I run Airbnb and write off expenses for Airbnb business.
How do I protect myself during the audit with supplies deductible so that I do not seem as mixing personal into business expenses?
For example, guests and I both use toilet paper. I think I should best estimate and write off a part of the cost of the toilet paper. If I ever get audited, which I heard I need to prove I am not guilty, how do I prove that? Do I need to provide the total cost of toilet paper that year and show the write-off is a percentage of that?
Thank you!
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Your approach to calculating the shared supplies expense is a good one. If it were questioned, you would need to be able to show somehow that you actually spent more for that 'supply' than you were claiming as a rental expense. You would also need to be able to explain how you arrived at the percentage that was used for the rental expense.
Your approach to calculating the shared supplies expense is a good one. If it were questioned, you would need to be able to show somehow that you actually spent more for that 'supply' than you were claiming as a rental expense. You would also need to be able to explain how you arrived at the percentage that was used for the rental expense.
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