“What business expenses can I deduct for my business?” That is a question that seems to never grow old! Let’s first start with defining a business expense. According to the IRS,
“A [deductible] business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business”. An expense does not have to be indispensable to be considered necessary”.
There is no master list of business expenses since each business is unique. However, here is a list of some common expenses which may be a business deduction for your business:
- Bank Charges/Merchant Services Fees
- Commissions and Fees
- Computer Software
- Contract Labor
- Liability Insurance
- Tax Preparation Fees
- Legal/Accounting/Professional Fees
- Licenses and Permits
- Meals & Entertainment
Note that all of these expenses may not be 100% deductible in any given year. For more tax information on business expenses, click on the “Small Business Tax” tab above and review the publications listed towards the bottom.
Simply Taxes, LLC is a local year-round tax preparation firm with an office located in North Raleigh. Our Raleigh accountants are ready to work one-on-one with you to help maximize your refund opportunity and to provide other tax services in a professional manner.
The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers