Travel and entertainment expenses

There are two types of records you need in order to claim deductions for your travel and entertainment expenses:

1. Written substantiation in a diary, log book, or other notation system containing certain specific information, and documentary evidence (receipts, canceled checks, or bills) to prove the amount of the expense.

2. The IRS now accepts certain electronic or faxed information to be treated as documentary evidence (e.g., a faxed statement attesting to a "ticketless" airline ticket is considered documentary evidence). Personal digital assistants (PDAs) and BlackBerries may also be used for written substantiation in lieu of a logbook.

Also, remember to include names of people involved when the expense is made, plus the business purpose for the deduction.