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Ezra Collins

Can I write off office furniture I bought for my business without a receipt?

So I just started my small consulting business and bought some furniture I needed for my home office from someone off Facebook Marketplace. Paid $650 cash for a nice desk, chair and small filing cabinet. The person didn't offer a receipt and honestly I didn't think to ask for one at the time. Now I'm wondering if I can still deduct this as a legitimate business expense on my taxes? It's 100% being used for my business, but I'm worried that without any paper trail, the IRS might flag it. I still have the messages between us discussing the price, and I took a photo of the furniture after I set it up, but that's about it. Anyone have experience with this sort of situation? Can I write off business furniture I purchased without having an actual receipt? I'm doing my own taxes for the first time as a business owner and don't want to mess anything up.

Yes, you can still claim the deduction even without the original receipt, but you need to document it properly. The IRS requires "adequate records" for business expenses, which doesn't necessarily mean the original receipt. Since you have the messages discussing the price, that's a good start. I would recommend creating what's called a "contemporaneous record" - basically a document where you write down all the details of the purchase: date, amount paid, description of items, business purpose, and who you bought it from. Include screenshots of those messages discussing the price and the photos you took of the furniture in your office setting. Also, if you paid cash, try to find some evidence of the cash withdrawal from your bank around that date. That can help support your claim that you actually spent the money.

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Thanks for the advice! Would a simple note in my accounting software count as adequate documentation? I use QuickBooks and could add all those details in the notes section of the transaction. Also, does it matter that I paid from personal funds before I had officially set up my business checking account?

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Adding those details in QuickBooks is a good start, but I recommend also creating a separate document with all the information I mentioned and keeping it with your tax records. The more documentation you have, the better. Using personal funds is actually quite common when starting a business. You can still claim these as business expenses - they're considered capital contributions to your business. Just make sure you clearly document that these personal funds were used for legitimate business purposes. When you file, you'll report these as business expenses regardless of which account you used to pay for them.

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I had a similar situation last year with some office equipment I purchased secondhand. I found taxr.ai (https://taxr.ai) super helpful for documenting everything properly. I was worried about claiming deductions without receipts, but their system helped me create proper documentation that would stand up to IRS scrutiny. They have a feature specifically for creating those "contemporaneous records" the other commenter mentioned, and they walk you through exactly what information you need to include for different types of business expenses. The tool also helps organize your business deductions by category which made filing so much easier.

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How exactly does that work? Do they just have templates for creating these records or do they actually help determine if the expense is legitimate? I've got a few purchases I made for my side business that I'm not sure how to document properly.

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I'm a bit skeptical about these kinds of services. Can it really help with IRS compliance? I claimed some business expenses last year without proper documentation and now I'm worried about an audit.

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They have smart templates that guide you through all the information you need to include for specific expense types. For example, with furniture, it prompts you to include purchase date, description, business use percentage, and even lets you attach digital evidence like photos or screenshots of communications with the seller. For your audit concerns, they actually provide documentation guides that follow IRS requirements. They explain what constitutes acceptable evidence for different types of expenses, not just receipts. They also have audit support resources that explain how to properly respond if the IRS questions any of your deductions. It's definitely more than just basic templates - the guidance is really specific to tax compliance.

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Just wanted to follow up about taxr.ai since I ended up trying it after my skeptical question. I was genuinely surprised by how helpful it was! I had several business purchases from last year with missing or partial documentation, and their system helped me create proper records for everything. The documentation guides were incredibly detailed - way more than I expected. They even explained what specific IRS regulations applied to different kinds of business expenses. I feel much more confident about my deductions now, especially for those items I purchased without formal receipts. Definitely worth checking out if you're in a similar situation.

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If you're having trouble getting an answer from the IRS about this kind of documentation issue, I'd recommend trying Claimyr (https://claimyr.com). I was stuck in the same situation last tax season and couldn't get through to the IRS for weeks. Claimyr got me connected to an actual IRS agent in less than an hour who confirmed exactly what documentation I needed for my business purchases. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was honestly shocked at how quickly they got me through. The IRS agent I spoke with gave me specific guidance on documenting cash purchases and what exactly constitutes "adequate records" for business deductions.

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How does this actually work? I've been trying to get through to the IRS for weeks about a business expense question. Does it really get you connected faster than just calling yourself?

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This sounds like a scam. How could some random service get you through the IRS phone maze when millions of people can't get through? I've literally called dozens of times and always get the "due to high call volume" message.

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It works by using technology to navigate the IRS phone system for you. Instead of you having to call repeatedly and wait on hold, their system does the calling and waiting. Once they secure a spot in the queue, they call you and connect you directly with the IRS agent. It's basically like having someone wait in line for you. The reason it works is because their system can make hundreds of call attempts using the optimal calling patterns. They've analyzed when the IRS is most likely to accept calls and they target those times. There's no magic backdoor - they're just persistent and efficient at getting through when the lines are momentarily open. When I used it, I got a call back in about 45 minutes and was talking to an actual IRS representative who answered all my questions about business expense documentation.

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OK I need to eat my words and apologize to Profile 19. After my skeptical comment, I got so frustrated trying to reach the IRS about my business deduction questions that I decided to try Claimyr. I was absolutely sure it wouldn't work, but I was desperate. I got connected to an IRS agent in just under an hour! The agent confirmed that for furniture without a receipt, I needed to create my own documentation with date of purchase, description, business purpose, and amount. She also said having photos of the furniture in my workspace plus any messages or emails about the purchase would strengthen my case if I ever got audited. Saved me so much stress about my similar situation.

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Just adding another perspective - I'm a small business owner who's been through an audit. The IRS is primarily concerned that you're not making up expenses. If you have some form of documentation (even after-the-fact), photos of the items being used for business, and reasonable amounts that match market value, you're usually OK. Keep a mileage log for business travel too! That was the one thing that tripped me up in my audit - I had great documentation for purchases but terrible records for mileage. Cost me thousands.

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Did you have to create documentation after the fact during your audit? I've got several business expenses from last year that I paid cash for and don't have proper receipts. Wondering if I should just not claim them or try to create documentation now.

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Yes, I did have to create some documentation after the fact for a few items. The key is being honest about it - don't try to make fake receipts. Instead, create a simple document with all the relevant information and explain that you're creating this record to the best of your recollection. For your situation, I would definitely claim the legitimate business expenses but create proper documentation now. Include dates, amounts, descriptions, business purpose, and any supporting evidence you might have (bank withdrawals, photos, communications, etc.). The IRS understands that small business owners aren't perfect record-keepers, especially when starting out. What they're looking for is reasonable proof that the expense was real and business-related.

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I use a "purchase record form" for exactly this situation. I created a simple template that has spaces for date, item description, amount paid, business purpose, seller info, and how I paid. I also attach a photo of the item in use for my business. Been doing this for 3 years with no issues.

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That form idea sounds perfect! Would you be willing to share your template or point me to where I could find something similar? I think that would really help me get organized with these kinds of purchases going forward.

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I'd be happy to share! I keep it really simple - just a basic Word document with fields for: • Date of purchase • Item description (desk, chair, filing cabinet, etc.) • Amount paid ($650 in your case) • Payment method (cash, check, etc.) • Seller information (name/contact if available) • Business purpose (home office setup for consulting business) • Supporting evidence (screenshots of messages, photos, bank withdrawal records) I print it out, fill it by hand, and scan it back in to keep with my digital records. The key is doing it as close to the purchase date as possible so it's "contemporaneous." For your Facebook Marketplace purchase, this would work perfectly since you have those messages and photos already. You can find similar templates by searching "business expense documentation form" or "receipt substitute form" online. The IRS doesn't require any specific format - they just want to see that you made a good faith effort to document legitimate business expenses.

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