Is it Deductible?
Small Business Edition
For every possible business deduction, there is a “yes, but…”
Click below for a free download that will give you an idea of the types of expenses you may be able to deduct. For every possible business deduction, there is a “yes, but…” aspect, so make sure you understand the conditions required for each. They may or may not be deductible in your case. Be sure to consult your tax professional.
The IRS’ general rule of thumb for deductible business expenses is that the expenses must be both “ordinary and necessary” to running your business. An ordinary expense is one that is common and accepted in your trade or business. 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.
Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part. Keep very good records.
While certain expenses are specific to what kind of business you run, click here to find some of the most common tax deductions available for most small-business owners.
https://www.evanstaxco.com/wp-content/uploads/2020/01/EvansTaxCo_SmallBizDeductions.pdf
The Fine Print
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in the entries in this blog (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
