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Determine Your Business Deductions

Determine Your Business Deductions Print
What is deductible for business taxes?

That is the question on everyone’s lips at tax time. Essentially the Internal Revenue Service (IRS) has four basic rules for deductions, which are:

  1. Expenses must be incurred in connection with your trade or business.
  2. Expense must be “ordinary”.
  3. Expense must be “necessary”.
  4. Expense must not be lavish or extravagant under the circumstances.

To read the rest of “Determining Your Business Deductions: What the IRS says  counts”, click here (.pdf).