How to Claim a Business Expense With No Receipt
Lost the receipt for a cash purchase? You may still be able to deduct it. Here is what records can substitute, where the Cohan rule helps, and where it does not.
Mylo Team • September 4, 2026 • 2 min read
The short answer
A lost receipt does not automatically mean a lost deduction. For many ordinary business expenses, other reasonable proof can support the claim: a bank or card statement, an email confirmation, a photo, or a contemporaneous log. But the tax rules are stricter for certain categories, so this works better for a hardware-store cash purchase than for a client dinner.
What can stand in for a receipt
Build the best record you can from what you have. A card or bank statement proves the amount, date, and payee. A calendar entry or note establishes the business purpose. A photo of the item or an email confirmation adds detail. The more of these you can line up, the stronger the position, since you are recreating the story of the expense even without the slip.
Where the Cohan rule helps, and where it does not
The Cohan rule, from a well-known court case, allows a reasonable estimate of an expense when you can show it was incurred but cannot fully document it. It is a safety net, not a plan. Crucially, it does not apply to travel, meals, gifts, or listed property, which are subject to strict substantiation, and lodging always needs a receipt. For those, an estimate will not save the deduction. The full story is in the Cohan rule.
The real fix: stop losing receipts
Relying on reconstruction is stressful and weaker than a real receipt. The durable answer is to capture receipts as they happen so the record always exists. See IRS receipt requirements for what you are expected to keep, and let capture run automatically so a missing receipt stops being a problem you have to solve.
The faster way: let Mylo keep the proof automatically
This is where Mylo quietly does the heavy lifting. It works in the background to capture every receipt from your inbox and the stores you shop at, matches each one to the card charge that paid for it, and files it as a categorized expense, so when you claim a purchase even when a receipt goes missing the proof is already there. No new card and no manual entry: Mylo works on top of the Visa, Mastercard, or Amex you already use, and syncs clean, categorized expenses to QuickBooks. Free for individuals on iOS, Android, and the web; teams are $9/user/mo (30-day free trial).
Sources: IRS substantiation rules (IRC sections 162 and 274) and Cohan v. Commissioner. This article is general information, not tax advice. Rules change and situations differ, so check with a qualified tax professional for your situation.
Frequently asked questions
Can I deduct a business expense without a receipt?
Sometimes. For many ordinary expenses, other records such as a bank or card statement, a photo, or a log can support the deduction. But some categories require a receipt or strict records, so it is not a blanket yes.
What is the Cohan rule?
It is a principle from a court case that lets taxpayers deduct a reasonable estimate of an expense when they can show it was incurred but lack complete records. It is a fallback, not a strategy, and it does not apply to everything.
Which expenses always need a receipt?
Travel, meals, gifts, and listed property are subject to strict substantiation under the tax rules, so estimates generally will not save them. Lodging always needs a receipt. Keep documentation for these no matter the amount.
How does Mylo prevent lost receipts?
Mylo captures receipts from your inbox and the stores you shop at automatically and matches them to card charges, so the record exists before you ever need it.
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Mylo Team
The Mylo Team writes practical guides on receipts, expenses, write-offs and keeping your books clean, from the people building Mylo, the app that puts receipts and expenses on autopilot.
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