ANFRA



The truth is, almost everything can be written off as a business expense. The key to this is properly categorizing your expenses based upon the Business Activity Code elected on your Corporate Tax Return.  In order to make sure you’re expensing the correct items and not going outside the normal business activity, it is best to know and understand the most basic of expenses any business can deduct.  Listed below is a list of 25 of the most common business expenses and a brief note as to how to properly use it;

  • Business Meal – Meal needs to be related to your business and documented
  • Work-Related Travel Expenses – Trip must meet IRS Topic No. 511
  • Work-Related Car Use – Standard Mileage Deduction of $0.545 per mile
  • Office Expenses – Five dollars per square foot of home that is used for business
  • Business Insurance – All business insurance including renter’s for home based
  • Office Supplies – Printers, paper, pens, computers, work-related software
  • Phone and Internet Expenses – 100% of internet and phone used for business purposes
  • Business Interest and Bank Fees – Interest and fees on credit cards, loans, and any bank charges
  • Depreciation – total cost of asset / useful lifetime of asset
  • Professional Service Fee – accounting, legal, tax service, software
  • Salaries and Benefits – Reasonable and necessary non-owner employee wages
  • Charitable Contributions – Donations to qualified organizations
  • Education – Expenses incur to bring value to your business or skill
  • Child and Dependent Care – Children under 12 and adults unable to care for themselves
  • Energy Efficiency Expenses – Upgrades made to ensure more energy efficiency
  • Investments – Interest paid on loan and points unto investment income
  • Foreign-Earned Income Exclusion – US Citizen owned business based abroad with foreign money
  • Medical Expenses – Insurance premiums and medical care expenses
  • Real Estate Taxes – State and local real estate taxes up to $10,000.00
  • Mortgage Interest – Interest paid towards mortgage, loans to buy, construction
  • Moving Expenses – Work related relocation outside of 50 miles distance
  • Retirement Contributions – Contributions to any IRS approved retirement account
  • Advertising and Promotions – Any and all digital and printed advertising including website
  • Client and Employee Entertainment – 50% for client and 100% for employee
  • Startup Expenses – $5,000.00 deduction for business startup