What is considered a tax deductible small business expense? What isn ?
According to the tax code, just about any business expense that is “ordinary, necessary and reasonable” will qualify as a deduction that will decrease the profits of your business for tax reasons. However, the question arises, what exactly is ordinary and necessary? According to the Internal Revenue Service (IRS), any expense that is “helpful and appropriate” for you business will be considered ordinary and necessary. For example, if you purchase a new computer for your small business, or buy stationary to send out your mailings, these expenses would probably be considered ordinary and necessary. However, if you buy a new computer for your son to use in his room, this would not be a business expense even if you ran your small business from home. However, there are a few expenses that are explicitly prohibited from being considered an ordinary and necessary business expense. For example, bribes to public officials are not considered ordinary and necessary. Other examples of expenses tha
