Article Date:
April 2023

Word Count:



Don’t Expose Yourself with Improper Use of the $75 Rule

When the $75 rule applies, you don’t need a receipt.


The problem with this rule is that it is often thought to apply to all tax deductions. That’s wrong.


Now, think of the taxpayers who incorrectly apply the $75 rule to all of their tax deductions. They are exposed to a massive loss of deductions and likely some penalties too.


The $75 Rule


IRS Reg. Section 1.274-5(c)(2)(iii) contains the $75 rule.1 Notice 95-50 contains a clear explanation of what the $75 rule applies to.2 ... Log in to view full article.

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