I received COLA that is included in W2 & taxable for foreign business travel expenses like lodging and food in 2016. Is foreign rental agreement alone good for deduction?

[lianzidan]

I checked with company that the COLA is taxable but I can deduct my foreign travel expenses like lodging, food and transportation.  I kept receipts for food and transportation.  I used cash to pay rental but I have signed rental agreement, so my main question is whether the rental agreement itself is a sufficient document to claim my foreign lodging expenses that the COLA is awarded for.

Thanks in advance.

[MaryK1 · Accepted solution]

No a copy of the rental agreement alone will not be sufficient if you got audited.  If possible, try to get a receipt or statement now.  At the very least, you should have a record of the date, amount of how much you paid for the rent, and the name, address, phone of the person you gave the money to. The IRS says:

The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them. Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses.