According to the IRS, “business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.”
We thought it might be beneficial to list some common business expenses since some business owners may not be aware of the various expenses that fall into this category.
Common business expenses: (assuming the following are, of course, used for business purposes)
– Office Supplies
– Supplies that relate to your business/trade
– Cell phone
– Computers/IT support
- Airline tickets
- Rental cars
– Automobile- Either you keep track of your mileage and get reimbursed for it, or you keep track of the following:
- Car payment
- Car repairs/maintenance
We want to help ensure that your business is being run ethically. That means that we are here to inform you about various laws and IRS standards as you make daily business decisions. If you have any questions or would like to set up an appointment, contact us today.