Receipts for rental expenses

[Vinay K.]

Hello Everyone,

A part of the fence (shared fence between my rental property and a neighbor) fell down last year. The neighbor hired someone to fix it. Neighbor claims she spent $600 and lost the receipts. I want to believe her but I'm concerned about my taxes. Neighbor is ready to send me an email confirming that I paid her $300 (for my part of the fence repair). Is that email an acceptable receipt (if there is an IRS audit)? Pls advice.

Thanks in advance!
Vinay

[Mat Harp]

If you paid her via a check then the check proves _you_ spent the money[1]. Better if the check has the word 'fence' scribbled on it. Print out a copy of the cashed check along with the email, staple them together and file.

Done.

[1] IRS doesn't care if she ripped you off. Only that you paid and it's not your money anymore.

PS: It's $300, whats the taxes, penalties and interest on $300? Not much from the IRS's perspective.