End of the Year Expense Organization
It is getting close to the end of the year, and that means it’s time to get your expenses organized. At this point, you're probably wondering what to do with those pesky receipts. In my humble opinion, I believe you should organize your receipts by the category in which they will be deducted. For example, if you bought staples, paperclips and paper, receipts should go in a folder called office supplies.
Most tax accountants prefer this method because we must categorize all expenses in the same way for your tax return. If they are already categorized this will save you and/or your tax accountant a great deal of time later. To give you an idea, here is a list of clergy expenses. You may match your receipts to these expenses in order to categorize them.
Books & Publications
Clergy Clothing Cleaning
Meals and Entertainment
Depreciation Assets- Items that have a useful life of a year or more like computers and equipment.
Also, let’s not forget about housing.
Real Estate Taxes
Utilities (Gas, Electric, Water, Trash Pickup,
Repairs and Remodel
Yard Maintenance and Improvements
Maintenance Items (pest control, security, etc.)
Homeowners Association Dues
If you are unable to get your hands on a particular receipt, ask your account what other forms of documentation you can use to write off your expenses. Remember, these lists may not include every type of expense that you have. If you have any questions, please contact Jacobson Clergy Tax Service. We are always available and happy to help.