writing off cash expenses for a rental property

[Nathan Williams]

say you buy a used $150 stove from some random person on craigslist/offerup or hire a handyman for a $200 and they are taking cash only... is a ad hoc bill of sale enough documentation for these expense write offs to hold up against an IRS audit?

thanks

[Patricia Steiner]

Fun topic...and it's one that affects me as well. Here's what the IRS says:  "The IRS requires businesses to keep receipts for all business expenses of $75 and up. Note that if your business is audited, you'll still need to be able to provide basic information about expenses under $75, such as the date of the purchase and its business purpose."  Retention of receipts is 3 years.  

So cash...here's what was shared with me:  "Your supporting documents should identify the payee, the amount paid, proof of payment, the date incurred, and include a description of the item to show that the amount was for purchases."

Then this when it comes to paying handymen/contractors:  "If you paid an independent contractor less than $600 over the course of the financial year, you don't need to submit Form 1099-NEC for them."

Hope this helps.  And, I just document every expenditure - regardless of amount...just is what it is and it is annoying.