The Key To Business Deductions Are Located In These 27 Words From The Internal Revenue Code Section 162(a):
There shall be allowed as a deduction, all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.
300+ Business Deductions In Alphabetical Order*:
Abandonment of property used for business purposes
Accounting and auditing expenses, such as:
Auditing your books and accounts
Costs of bookkeeping
Costs of tax strategy planning
Costs of preparing and filing any tax returns
Costs of investigation of any tax returns
Costs of investigation of any tax returns
Costs of defense against any IRS or state agency audits or challenges
Accounts receivable, worthless
Acheivement awards-requires written plan
Longevity award
safety award
Sales award
Advances made to employees or salespeople where repayment is not expected
Advances to employees canceled as bonus
Advertising expenses, such as:
Premiums given away
Advertising (newspaper, radio, magazines, other)
Prizes and other expenses in holding contests or exhibitions
Contributions to various organizations for advertising purposes
Cost of displays and posters to attaract customers
Publicity (general speaking, all costs including entertainment, music, etc.
Christmas presents to customers or prospects-de minimis rule
Alteratons to business property, if minor
Amortizations
Attorney's fees and other legal expenses involving:
Tax strategy
Drafting of agreements, resolutions, minutes, etc.
Defense of claims against you
Collection actions taken against others
Any other business related legal activity
Auto expenses for business purposes, such as
Damage to auto not covered by insurance
Gasoline
Oil
Repairs and maintenance
Washing and waxing
Garage rent
Interest portion of payments
Insurance premiums such as fire, theft, collision, liability, etc.
Lease payment
License plates
Driver's license fee
Depreciation
Wages of chauffeur
Section 179 deduction for qualified vehicle
Bad Debts-if previously taken into income
Baseball, softball, soccer team equipment for business publicity
Board and room to employee:
All meals and lodging if for employer's benefit
Temporary housing assignment
Board meetings
Bonuses as additional compensation to employee
Bookkeeping services
Building expenses, used for business such as:
Repairs to building
Janitorial service
Painting
Interest on mortgage
Taxes on property
Water
Rubbish removal
Depreciation of building
Heating
Lighting
Landscape
Burglary losses not covered by insurance
Business taxes-except federal income taxes
Cafeteria plan (requires written plan)
Capital asset sale-losses
Car and Taxi fares
Casualty damages such as:
Bombardment
Fire
Storm
Hurricane
Drought
Forest fire
Freezing of property
Impairment or collapse of property
Ice
Heat
Wind
Rain
Charitable contributions
Checking account bank charges
Child care (requires written plan)
Children's salaries
Christmas presents to employees, customers, and prospects for advertising or publicity purposes, or goodwill if customary in the trad
Collection expenses including attorney's charges
Commissions on sales of securities by dealers in securities
Commissions paid to employees for business purposes
Commissions paid to salesman
Condemnation expenses
Contributions (deductible if made to organizations founded for the following purposes, subject to some limitations)
Religious
Charitable
Scientific
Literary
Educational
Prevention of cruelty to children and annimals
Convention expenses, cost of attending conventions
Cost of goods
Credit report costs
Day care facility
Depletion
Depreciation
Discounts allowed to customers
Dues paid to:
Better Business Bureau
Chamber of Commerce
Trade associations
Professional societies
Technical societies
Protective services association
Education assistance (requires written plan0
Embezzlement loss not covered by insurance
Employee welfare expenses such as:
Dances
Entertainment
Outings
Christmas parties
Shows or plays
Endorser's loss
Entertainment expenses
Equipment, minor replacements
Equipment purchases (may require capitalization and depreciation)
Equipment repairs
Exhibits and displays to publicize your products
Expenses of any kind directly chargeable to business income such as:
Renting of storage space
Safe deposit boxes
Upkeep of property
Books to record income and expenses or investment income
Experimental and research expenses
Factoring
Fan mail expenses
Fees for passports necessary while traveling on business
Fees to accountants
Fees to agents
Fees to brokers
Fees to investment counsel
Fees to professionals for services rendered
Fees to technicians
Fire loss
Forfeited stock
Freight charges
Gifts to customers (limits apply)
Gifts to organized institutions such as:
Charitable
Literary
Educational
Religious
Scientific
Group term life insurance on employees' lives
Guarantors's loss
Health insurance
Heating expenses
Hospitals, contributions to
Improvements, provided they are minor
Insurance premiums paid
Interest on loans of all kinds for busines purposes such as:
Loans
Notes
Mortgages
Bonds
Tax deficiencies
Installment payments of auto, furniture, etc.
Margin account interest
Bank discount on note
Inventory loss due to damages
Investment counsel fees
Lawsuit expenses
Legal costs such as:
In defense of your business
In settlement of cases
Payment of damages
License fees
Lighting
Living quarter furnished employees for business's benefit
Lobbying costs
Losses, deductible if connected with your business or profession such as:
Abandoned property
Accounts receivalble
Auto damage caused by fire, theft, heat, storm, etc.
Bad debts
Bonds
Building damage
Burglary
Business ventures
Capital assets
Casualties: fire, theft, heat, storm, etc.
Damages to property or assets
Deposit forfeiture on purchase of property
Drought
Embezzlements
Equipment abandoned
Forced sale or exchange
Foreclosures
Forfeitures
Freezing
Goodwill
Loans not collectible
Theft
Transactions entered into for profits
Maintenance of business property
Maintenance of office, store, warehouse, showroom, etc.
Maintenance of rented properties
Management costs
Materials
Meals, subject to limitation
Membership dues
Merchandise
Messenger service
Moving costs
Musician expenses
Net operating loss (may be carried back to previous years' income for refund and or forward against future years' income
Newspapers
Office expenses such as:
Wages
Supplies
Towel service
Heating and lighting
Telephone and telegraph
Repairs
Refurnishing (minor items)
Decorating
Painting
Office rent
Office rent-portion of home used for business
Office stationery and supplies
Passport fees
Pension plans (must be properly drawn)
Periodicals
Physical fitness center
Plotting of land for sale
Postage
Professional society dues
Property depreciation
Property maintenance
Property repairs
Publicity expenses
Real estate expenses of rental or investment property such as:
Taxes of property
Insurance
Janitorial services
Repairing
Redecorating
Painting
Depreciation
Supplies
Tools
Legal expenses involving leases, tenants, or property
Bookkeeping
Property management
Utilities
Commissions to secure tenants
Maintenance (heating, lighting, etc.)
Advertising for tenants
Cost of manager's unit, if on site and at employers convenience
Rebates on sales
Refunds on sales
Rent settlement (cancel lease)
Rental property expenses such as:
Advertising of vacant premises
Commissions to secure tenant
Billboards and signs
Rent collection expense
Rents paid such as:
Business property
Parking facilities
Safe deposit boxes
Taxes paid by tenant for landlord
Warehouse and storage charges
Repairing of business property such as:
Alterations provided they are not capital additions
Casualty damages, replaced, provided they are not capital additions
Cleaning
Minor improvements
Painting
Redecorating
Repairing of furniture, fixtures, equipment, machinery, and buildings
Roof repairs
Royalties
Safe deposit box rental
Safe or storage rental
Salaries (including bonuses, commissions, pensions, management fees)
Sample room
Selling expenses such as:
Commissions and bonuses as prises
Discounts
Entertainment
Prizes offered in contests
Publicity and promotion costs
Rebates
Services for professional or other necessary for conduct of business
Social Security taxes paid by employers
Stationary and all other offic supplies
Subscriptions to all trade, business, or professional periodicals
Supplies (office or labatory)
Taxes such as:
City gross receipts tax
City sales tax
State gross receipts tax
State sales tax
State unemployment insurance tax
Federal Social Security tax
State income tax
State unincorporated business tax
Real estate tax
Tangible property tax
Intangible property tax
Custom, import, or tariff tax
License tax
Stamp taxes
Auto registration tax
Safe deposit tax
membership dues tax
Gasoline tax
Admission tax
Telephone and Telegraphs
Traveling expenses including meals, taxi fare, rail fare, airfare, tips, telephone, telegrams, laundry and cleaning, entertainment for business purposes.
Unemployment compensaion taxes paid by employer
Uniforms furnished to employees
Wages
Workman's compensation fund contributions