Henrietta has hired Gracie, a CPA, to complete this year's Form 1040.Henrietta uses software to keep the books for her business.She tells Gracie that a $5,000 amount for business supplies is "close enough" to constitute the deduction.Gracie can use this estimate in completing the Form 1040.

Question

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Gracie cannot rely on an estimated amount provided by Henrietta for business supplies deduction without further investigation and substantiation. Gracie must ensure that the deduction meets the substantiation requirements of the IRS.

Henrietta Has Hired Gracie, a CPA, to Complete This Year's