The short answer

Allocate identifiable items to the property that used them. Keep the original receipt and a separate allocation note.

Calculator, coins, glasses, and a red pen on a lined notepad.
Illustrative stock photo · Photo: Tara Winstead / Pexels · Pexels License

Make the split reproducible

  • Mark each receipt line with a property code. Put unused stock in a supplies bucket until assigned.
  • Apply tax and discounts consistently; keep rounding adjustments visible.
  • Make the allocation total equal the receipt total before importing it.

IRS expense documentation can require multiple records to establish the transaction. [1]

Illustrative example: a $96 receipt contains $30 for A, $46 for B and $20 for stock. Do not also book the full $96 as another expense. Ask your preparer how the stock should be treated for tax.

Sources

This article was generated by AI using the sources below. Editorial standards.

  1. What kind of records should I keep? — IRSSupports the attributed passage: IRS expense documentation can require multiple records to establish the transaction. The practical workflow and labeled examples are the publication’s own applications, not source-reported cases. Source checked Sep 8, 2026.

Have a correction? See our editorial policy and correction process.