Income Documentation: Show Me the Money

The IRS wants to see every dollar that flowed into your business. Gather these income-related documents:

• All 1099 forms (1099-NEC, 1099-K, 1099-MISC, etc.)
• Sales records and invoices
• Interest and dividend statements
• Schedule K-1 forms from partnerships or S-Corps you're invested in
• State-by-state sales reports (if you operate in multiple states)

Expense Tracking: Every Receipt Tells a Story

This is where organized business owners shine. If you've been throwing receipts in a shoebox, it's time to level up:

Major Expense Categories

• Office supplies and equipment
• Travel and meal expenses (remember the 50% limit on meals)
• Professional services (legal, accounting, consulting fees)
• Marketing and advertising costs
• Insurance premiums
• Vehicle expenses (keep detailed mileage logs)

Home Office Deduction

If you work from home, document:
• Square footage of your dedicated office space
• Total square footage of your home
• Home-related expenses (utilities, mortgage interest, property taxes)

Asset Management and Depreciation

Don't let depreciation deductions slip through your cracks. Track these carefully:

• Purchase dates and costs for all business assets
• Depreciation schedules from previous years
• Asset disposals (sales, trade-ins, or scrapping)
• Business use percentage for mixed-use assets
• Section 179 elections and bonus depreciation records