Tax Deductible Expenses

As previously mentioned, business expenses can either be tax deductible expenses fully or depreciated expenses. Knowing what tax deductible expenses are can save you a lot of money in tax bills. The IRS has allowed many tax deductible expenses for small business owners.

Below is a short list of tax deductible expenses. You need to be familiar with these tax deductible expenses to claim the appropriate tax deductions that you are entitled to.

Tax deductible expenses

• Advertising - such as in yellow pages, newspaper, radio, direct mail
• Bad debts - for sales and services
• Bank charges - such as for checks
• Books and Periodicals - business related
• Car and Truck expenses - gas, repair, license, insurance, maintenance
• Commissions - to sales reps
• Contract services - independent
• Convention expenses
• Display and exhibit expenses
• Donations
• Dues - professional
• Educational fees and materials
• Electric bills
• Entertainment of clients
• Freight - such as UPS, FedEx, Postal
• Gas bills
• Improvements - under $100
• Insurance - business related
• Interest paid out
• Laundry and cleaning - such as uniforms
• Legal and professional fees
• License fees - business license
• Maintenance - material and labor
• Office equipment - under $100
• Office furniture - under $100
• Office supplies
• Parking fees
• Pension and profit sharing plans
• Postage
• Print expenses
• Professional services
• Promotional materials
• Property tax
• Publications
• Rent
• Repairs
• Refunds, returns and allowances
• Sales tax - sales tax collected is offset by reimbursement to the State Board of Equalization
• Sales tax aid - purchases
• Subscriptions
• Telephone
• Tools - used in trade and with a purchase price under $100
• Uniforms purchased
• Utilities
• Wages paid out