Cash withdrawals for rent payments can be deducted if the rent is for a home office or business space. Ensure you have proper documentation to substantiate the deduction, including a signed lease agreement and receipts or acknowledgments from the landlord. Cash payments should be well-documented, as they can be harder to trace compared to other payment methods like checks or electronic transfers. Without clear proof of payment, the IRS may disallow the deduction, so it’s critical to maintain thorough records. For better compliance, it's advisable to use traceable payment methods for business-related rent, which ensures that you can clearly separate business and personal expenses during tax preparation.