Minor Mechanical Repairs

Minor Mechanical Repairs.................... 6-5

Labor: Records to Request/Examine........... 6-5

Audit Procedures............................ 6-5

Sublet Expenses.................................. 6-7

Inventory........................................ 6-7

Inventory Requirements...................... 6-8

Records to Examine/Request.................. 6-9

Audit Procedures............................ 6-9

Inventory Listed on Return................. 6-13

Paint and Supplies Inventory............... 6-13

Change in Accounting Method..................... 6-14

Chapter 7 -- Expenses

Introduction..................................... 7-1

Automobile Expense............................... 7-1

Vehicle Owned by Corporation................ 7-2

Vehicle Owned by Shareholder................ 7-2

Leased Vehicles............................. 7-3

Entertainment and Promotion................. 7-3

Inadequate Verification..................... 7-3

Personal Expenses........................... 7-4

Misclassified Business Meals................ 7-4

Gifts....................................... 7-4

Expense Allowances.......................... 7-4

Rent Expense..................................... 7-4

Real Property............................... 7-5