1. Money
Send to a Friend via Email

How Do I Show My Business Income for Tax Purposes?

By

Question: How Do I Show My Business Income for Tax Purposes?
Answer:

If you were asked (by the IRS, for example) to substantiate your business the amount and the sources of your income, could you do it? You must be able to show what money you received and who you received it from. You must also show the source of all funds deposited into your business checking account. In addition, the IRS may want you to prove that you are not hiding income. The business records you will need to prove your gross receipts include:

  • Cash register tapes
  • Bank deposit slips
  • Receipt books
  • Invoices
  • Credit card charge slips
  • Forms 1099-MISC

Although the IRS doesn't specifically mention bank statements, you should save all bank statements, in paper form or as PDF documents, to substantiate your business income.

Back to Business Records to Collect and Keep

Related Video
Adam Gerber on advertising business models

©2014 About.com. All rights reserved.