Which business expenses can I deduct for income tax purposes?

September 23rd, 2011 by Michael

Generally, all the expenses you incur to start and operate your business are deductible, however many are subject to various IRS rules; for example, start-up costs, vehicle expense, meals and entertainment, and use of a home office. Start by reading IRS publications (such as the Business Tax Kit) and looking at the tax returns for your form of business. For sole proprietors, that is a Schedule C. You can get IRS materials from the IRS Web site, from your CPA’s office, or by calling the IRS at (800) 829-3676. It is very important to set up a good bookkeeping system immediately upon going into business. QuickBooks Pro Accounting System or any accounting software package is recommended.

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