What Can Be Deducted?
What is tax deductible and what can never be deducted?
This is a basic list of deductible items for business owners. Please check with us for details about other possible deductions and limitations.
Good for You
- Accounting fees
- Bank charges
- Commissions & sales expenses
- Consultation expenses
- Continuing professional education
- Contract labor
- Credit & collection fees
- Delivery charges
- Dues & subscriptions
- Employee benefit programs
- Equipment rentals
- Factory expenses
- Interest paid
- Internet subscriptions, domain names & hosting
- Legal fees
- Maintenance & repairs
- Office expenses & supplies
- Pension & profit-sharing plans
- Print & copy
- Professional development & training
- Professional fees
- Salaries, wages & other compensation
- Small tools & equipment
- Trade discounts
Maybe, Maybe Not
Not all expenses are fully deductible. Some expenses are only partially deductible. Always call to check with us for details.
- Gifts: are deductible up to $25 per person. Gift items that cost $4 or less are fully deductible
- Automobile &transportation expenses: must be split between personal use (non-deductible) and business use (deductible)
- Home office: must be split between personal use (non-deductible) and business use (deductible)
- Meals & entertainment: only 50% is deductible
Some business expenses, even though they may be directly related to your trade and/or profession, are never tax-deductible. Call us to discuss your options.
- Bribes & kickbacks (it wouldn't be on the list if it wasn't tried)
- Contributions to political parties and/or candidates
- Dues & membership fees for social clubs
- Lobbying expenses
- Penalties & fines