Question

Which of the following information is not required for substantiation of business gift expenditures?

a)Date and description of the gift.
b)Specific business purpose of the gift.
c)Receipt to provide evidence of amount of expenditure.
d)Identity of, and business relationship to, those persons receiving the gift.

Answer 1

The information not required when substantiating business gift expenditures is the receipt to provide evidence of amount of expenditure, as long as the amount can be supported by other means.

Step-by-step explanation:

When substantiating business gift expenditures, the information not required is the 'receipt to provide evidence of amount of expenditure'. The Internal Revenue Service (IRS) in the United States requires businesses to keep records that show the following four items:

1. The amount of the gift.
2. The date of the gift.
3. The description of the gift.
4. The business purpose of the gift and the details of the business relationship with the person receiving the gift.

Therefore, while a receipt is useful, it is technically not a requirement so long as the amount can be substantiated by other means.