Business Deductions

When you are running a business there are more deductions that are available than there are to most other people. Generally, money you spend in an attempt to earn more money, is deductible, with limits of course. So here is a short list just to get you thinking about your expenses, and a few examples or notes about each.

  • Accounting
    • Bookkeepers who aren't employees
    • Accountants
  • Advertising
    • Online ads
    • Newspaper ads
    • Billboards
    • Business cards
    • Promotional product you give as advertising
  • Answering Service
    • Voice mail, if you pay for it.
    • CommuniKATE
    • A 1-800 call center service you use
    • An automated phone system you lease
  • Bad Debts from Sales or Services
    • When you get ripped off from one of your customers or clients
  • Bank Charges
    • Monthly fee on bank accounts
    • ATM fees
    • Many many more as banks find new ways to charge people
  • Car and Truck expense
  • Commissions
    • When yo pay someone else to sell, or build, to speak, etc for a portion of the profit.
  • Contract Labor
    • Contract workers, not employees
  • Delivery and Freight
    • Shipping costs to send or receive products or equipment.
  • Dues and Subscriptions
    • A real estate broker having a subscription to local real estate publications.
    • A stock broker having a subscription to the Wall Street Journal.
    • Not for a lawyer to have a subscription to Sports Illustrated.
  • Employee Benefit Programs
    • Good for you, giving your employees benefits.
  • Health Insurance Premiums
  • Insurance other than health and auto
    • Casualty insurance
    • Liability insurance
  • Janitorial
    • If you hire an outside company to do the cleaning services for your company.
  • Laundry and Cleaning
    • Uniforms to be cleaned
    • Mascot outfit to be dry cleaned
    • Not for your best suit and tie to be cleaned.
  • Legal and Professional
    • Fees paid to a Tax Preparer
    • Fees to a Lawyer
    • Fees to an Architect
  • Miscellaneous
    • Just make sure that you can directly attribute anything in this category to your business.
  • Office Expense
    • New Printer
    • Box of Paper
    • Computer
    • Desk
  • Outside Services
    • Paying a landscape company to keep your office building's landscaping looking good.
  • Parking and Tolls
    • You had a meeting in town and had to pay to park your car.
    • Not if you had a meeting in town and got a parking ticket.
  • Postage
    • Mailing flyers.
    • Mailing documents.
  • Printing
    • Folders with your company name and logo.
    • Business cards.
    • Magazine company printing magazines. 
  • Rent or Lease
    • Vehicles
    • Machinery
    • Equipment
    • Tractors
  • Repairs
    • Farmer buying tractor parts.
    • Buying a new front door after a robbery.
  • Security
    • Paying a security company.
    • Buying and implementing a security system. 
  • Supplies
    • Nails for a roofer.
    • Nail files for a manicurist.
  • Taxes
    • Real Estate Taxes.
    • Payroll taxes.
    • Sales tax.
  • Licenses
    • Business license
    • Corporation fees
  • Telephone
    • The cell phone you use for work
  • Tools
    • Tools of your trade.
    • Not tools not of your trade.
  • Travel, Meals, and Entertainment (with extra limitations)
    • You have a meeting with all your partners over dinner.
    •  You travel overnight to meat a possible client,
    • You meat a client over coffee
  • Uniforms
    • A mascot uniform
    • Nurse scrubs
    • Clothing with specific company need or identification that you would normally not wear in public, without being in business.
    • Not a suit and tie.
  • Utilities
    • Gas
    • Power
    • Water
    • Trash
  • Wages
    • Wages paid to employees.

If your expense does not fit into any of these categories, just remember, almost any money spent in order to make more money, is usually deductible. As long as it is reasonable and directly attributable to the business.
Comments