Business Tax Preparation Services Offered in Chicago and Suburbs

What Kinds of Business Expenses Can I Deduct?

The IRS states, “To be deductible, a business expense must be both ordinary and necessary”. An expense is ordinary if it is common and accepted in your industry. An expense is necessary if it is helpful and appropriate for your business.

So, would scuba diving equipment be deductible as a business expense? It depends. For a plumber, scuba gear is neither ordinary nor necessary, so it would not be deductible. However, for a scuba instructor, the gear would be both ordinary and necessary, so it would be deductible.

 

Expenses Generally Deductible for Businesses Include:

  1. Accounting
  2. Advertising
  3. Automobile or Truck
  4. Bad Debt
  5. Bank Fees
  6. Charitable Donations
  7. Cleaning/Janitorial
  8. Collections
  9. Computers and IT Supplies
  10. Consulting
  11. Employee Compensation (Salaries, Wages, Awards, Bonuses and Fringe Benefits)
  12. Equipment
  13. Home Office
  14. Insurance
  15. Interest
  16. Legal
  17. Maintenance and Repairs
  18. Marketing
  19. Meals and Entertainment
  20. Office Supplies
  21. Outside Services
  22. Parking and Tolls
  23. Pension and Retirement Plans
  24. Postage
  25. Professional/Business Association Membership Dues
  26. Rent
  27. R&D
  28. Software and Online Services
  29. Storage
  30. Subscriptions
  31. Taxes (Sales, Excise, Fuel, Payroll, Real Estate)
  32. Telephone
  33. Travel
  34. Training
  35. Utilities
  36. Website Design

 

We will work with you to save money on your business or individual tax returns.

 

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