The IRS enables the $75 receipt rule only for Section 274(d) expenses which are expenses for travel, gifts, and listed property that require heightened documentation.
Example. If you buy office supplies that cost $15, you need a receipt. But if you pay $65 to pump gas into your business vehicle, you don’t need a receipt.
You can see how easy it is to get this rule wrong.
Keep receipts. Ignore the $75 rule. It’s too confusing because it applies to your vehicle, gifts, and travel—and almost nothing else. And it doesn’t really save time.
The credit card or bank statement proves you spent the money.
The receipt shows what you paid for.
The combination wins the deduction.