I once encountered a taxpayer who spread single expense deductions among several categories or accounts. For example a $1,000 rent expense would be allocated or spread among 4 categories or accounts such as:

rent $250

utilities $250

insurance $250

taxes $250

rather than deducting it as $1,000 of rent.

Since the deduction was allowable I concluded that

the taxpayer made this allocation so that each

category of expense was smaller thereby reducing the chance of being audited. The taxpayer could not or did not provide an acceptable reason. I just thought this was interesting.

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Did the same taxpayer break down your bill the same way? -

Accounting/Tax Prep Time

Paper Clips

Postage

Sheets of paper used

Telephone Calls

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