IRS Publication 334, Business Expenses

You can deduct the costs of running your business. These costs are known as business expenses. These are costs you do not have to capitalize or include in the cost of goods sold.

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses.

If you have an expense that is partly for business and partly personal, separate the personal part from the business part.

Useful Items - You may want to see:

Publication

• 535 Business Expenses

More on:

• Bad Debts

  Accrual method.
  Cash method.

• Car and Truck Expenses

  Office in the home.
  Methods for Deducting Car and Truck Expenses
  Reimbursing Your Employees for Expenses
  

• Depreciation

• Employees' Pay

  Fringe benefits.

• Insurance

  How to figure the deduction.

• Interest

• Legal and Professional Fees

  Tax preparation fees.

• Pension Plans

• Rent Expense

• Taxes

• Travel, Meals, and Entertainment

  Transportation.
  Taxi, commuter bus, and limousine.
  Baggage and shipping.
  Car or truck.
  Meals and lodging.
  Cleaning.
  Telephone.
  Tips.
  More information.
  

• Business Use of Your Home

  Exceptions to exclusive use.

• Other Expenses You Can Deduct

• Expenses You Cannot Deduct

See IRS Forms and Publications for information about getting publications and forms.

Information courtesy of the Internal Revenue Service.