As a general rule, you can write off any expense that is both ordinary and necessary to your business. Here are some common business expenses that you can write off:
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Office expenses: This includes office supplies such as printers, paper, pens, computers, and work-related software, as long as you use them for business purposes within the year in which they were purchased. You can also deduct work-related postage and shipping costs.
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Phone and internet expenses: If you use your phone and internet for business purposes, you can write off a portion of your monthly bill.
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Travel expenses: If you travel for business purposes, you can write off expenses such as transportation, lodging, and meals.
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Professional fees: Fees paid to consultants, attorneys, accountants, and other professionals are deductible at any time, even if they arent startup costs.
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Salaries and benefits: If you have employees, you can write off their salaries, benefits, and even vacation pay on your tax returns.
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Advertising and promotion: The cost of advertising and promotion is 100% deductible, including hiring someone to design a business logo, printing business cards or brochures, and paying for Facebook or Google ads.
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Business insurance: You can deduct the premiums you pay for business insurance, including property coverage for your furniture, equipment, and buildings.
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Home office: If you run your business from home, you can deduct expenses such as mortgage interest, insurance, utilities, repairs, and depreciation.
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Car expenses: If you use your car for business purposes, you can write off expenses such as gas, maintenance, and repairs. You can either deduct the actual expenses or use the standard mileage rate.
There are many other business expenses that you can write off, including inventory, rent, utilities, and education expenses. However, its important to keep complete and accurate records and receipts for all your business expenses to ensure that you can claim them on your tax return. If youre unsure whether a cost is a legitimate business expense, ask yourself whether its both ordinary and necessary to your business.