You can deduct business expenses on your income tax return. These are the current operating costs of running your business. 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, trade, or profession. A necessary expense is one that is helpful and appropriate for your business, trade, or profession. An expense does not have to be indispensable to be considered necessary.
The following are brief explanations of some expenses that are of interest to people starting a business. There are many other expenses that you may be able to deduct. See your form instructions and Publication 535, Business Expenses.
Business Start-Up Costs
Depreciation
Business Use of Your Home
Car and Truck Expenses
Information courtesy of the Internal Revenue Service.
Starting a Business and Keeping Records:
Introduction
What New Business Owners Need To Know
Forms of Business
Identification Numbers
Tax Year
Accounting Method
Business Taxes
Information Returns
Penalties
Business Expenses
Recordkeeping
How To Get More Information
