Keep receipts for expenses of $75 or more and a separate general ledger account for all claimed expenses regardless of the amount.

Your records should include:

�         amount of money you spent

�         time and place of travel or entertainment

�         business purpose of expenditure

�         business relationship of each person entertained.

Expenses for meals and entertainment must be directly related to the active conduct of your business (meaning they took place simultaneously) or associated with the active conduct of your business (meaning business was conducted either before or after).

An expense is deductible if:

�         you have more than a general expectation of deriving income or other specific business benefit (other than goodwill) at some future time

�         an active business meeting, negotiation, discussion or other transaction is conducted during the meal

�         the principal character of the meal is business.

Alternatively, the "directly related" test may be met when the meal takes place in a clear business setting, like the office.

You can deduct 50% of the expenses incurred for business meals and entertainment. As such, personal food and beverage cost incurred in the course of travel are within the scope of the rule.

So, don't wait until tax season. Make an appointment with your tax advisor as soon as possible. The money you save could help pay for next year's vacation.

Do this now

Since you'll already be with your advisor, take the opportunity to work on your retirement plan.

If you don't have one, get one. With an individual retirement account (IRA) you can deposit up to $2,000 annually if you're single, $4,000 annually if you're married and both work, or $2,250 annually if you're married and the only one working.

If you already have a retirement plan, review it now to maximize income deferral. Do an income projection for 2000. Even in the fourth quarter, you still can make some adjustments to avoid over- or underpaying your estimated income taxes.