What are deductible expenses?
Deductible Business expenses are the cost of running and operating a business. These expenses are generally deductible if the business operates to make a profit.
Deductible expenses can include business expenses that are both ordinary and necessary.
An ordinary expense is one that is common and accepted by your trade of business.
A necessary expense is one that is helpful and appropriate for your trade of business.
Some examples of deductible business expenses include
- Car and Truck expenses
- Salaries and wages
- Contract Labor
- Rent on Business property
- Home Office
- Meals and entertainments
- Rent on Machinery and Equipment
- Interest on Business Indebtedness
- Mortgage Interest
It is important to note what tax deductions you qualify for and best practice is to consult with your CPA or Tax professional.