Question

Which of the information listed below is NOT a requirement of the documentation needed to substantiate the business portion of mixed motive expenses?

Options:
Option 1: The time and business purpose should be included.
Option 2: The records should be written.
Option 3: The records should include written evidence of personal use.
Option 4: The records should include the amount.
Option 5: The records should be contemporaneous.

Answer 1

Option 3: The records should include written evidence of personal use is NOT a requirement of the documentation needed to substantiate the business portion of mixed motive expenses.

Step-by-step explanation:

Option 3: The records should include written evidence of personal use is NOT a requirement of the documentation needed to substantiate the business portion of mixed motive expenses.

The documentation for mixed motive expenses should include the time and business purpose (Option 1), written records (Option 2), the amount (Option 4), and be contemporaneous (Option 5).

For example, if an employee uses their personal vehicle for both business and personal purposes, they need to maintain records that accurately reflect the time and business purpose of each trip, the amount spent on business-related expenses, and ensure that the records are contemporaneous.