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:
- Automobile or Truck
- Bad Debt
- Bank Fees
- Charitable Donations
- Computers and IT Supplies
- Employee Compensation (Salaries, Wages, Awards, Bonuses and Fringe Benefits)
- Home Office
- Maintenance and Repairs
- Meals and Entertainment
- Office Supplies
- Outside Services
- Parking and Tolls
- Pension and Retirement Plans
- Professional/Business Association Membership Dues
- Software and Online Services
- Taxes (Sales, Excise, Fuel, Payroll, Real Estate)
- Website Design
We will work with you to save money on your business or individual tax returns.