Tax question

[madcamel]

Hi all
Lets say I own a parking company.
Private people park their domain at my site and I give them monthly payments.

I'm not sure how does it work in USA, but here in Israel, you need to have a receipt for every expense your business makes.
So how does it work with payments to private individuals ? Surely they can't give me a receipt.. So do I just print the payment page ?

Thanks
Idan

 

[MediaHound]

Idan,
Yalla
Thats the best you could do for now.
You could also invest in some software that keeps track of this for you, and prints out a report when you tell it to, at tax time.

 

[madcamel]

Of course its the best I can do.
But what will the IRS think about it ?

 

[DomainTurn.com]

In business you need to catagorize this information.
As you declare your income you should have an account that recives the same amount of deposit. This will be your income. To write it off you need to show a recipt for the payment sent and the proof it was made . A check that cleared or a statement that the person recived payment. Like escrow or paypal.

 

[madcamel]

So in the USA, if a company wants to report an expesne, it doesn't need to collect a "formal" tax receipt from the entity that received that expense ?