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Don't Overlook These 19 Business Expense Deductions

It is well-known that you can deduct the “ordinary and necessary” expenses of operating a business. But this can be surprising: The definition of deductible business expenses comprises a lot more than the usual laundry list of personal computers, labor costs and paper clips.

Here are 19 tax-deductible items you may easily overlook or ignore. The deductions for these expenses have been approved through court cases, private letter rulings or IRS regulations and code sections.

1. Answering service and beeper if you are required to be available as part of your job.

2. Audio and videotapes that enhance your business skills.

3. Bad business debts to the extent that they are worthless.

4. Bank service charges and similar charges for business accounts.

5. Beverages and snacks for your employees.

6. Business travel incidentals such as laundry, airport shuttles, tips and so on.

7. Computer software and Internet service provider fees.

8. Consulting fees you pay to outside experts.

9. Insurance premiums against fire, storm, theft, accident or similar losses.

10. Legal fees paid in connection with your business.

11. Long-distance telephone calls from home if made for valid business reasons.

12. Magazine subscriptions and other periodicals related to business activities.

13. Passport used for business trips.

14. Petty cash used for business-related expenditures.

15. Physical examination to establish fitness needed for a particular job.

16. Professional dues paid to business commerce organizations.

17. Special clothing required for work (e.g., for safety reasons).

18. Tickets to sporting events given to customers as qualified business entertainment (limited to 50% of the cost).

19. Union dues and similar assessments.

Of course, this list is not all-inclusive. At tax return time, search your records for business expense deductions that are out of the ordinary. Then check with a tax professional to determine if they are deductible or not. We would be glad to provide assistance for your situation.

 

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