- Employee Wages: Deduct gross wages, salaries, and bonuses paid to employees, including family members, provided services were rendered and payments processed via payroll. While sole proprietors can't deduct self-payments, S corporations can deduct shareholder wages.
- Employee Education Expenses: Reimbursements for employee education costs, such as tuition and books, are deductible if they enhance skills relevant to your business.
- Employee Benefits: Contributions to employee benefit programs like health plans and life insurance qualify as deductible expenses.
- Rent or Lease Payments: Rent for office space, equipment, and vehicles used for business is deductible. Exceptions apply for sole proprietors renting from themselves.
- Taxes for Leased Business Property: Taxes paid on leased business assets, including office space and vehicles, are deductible.
- Business Interest: Interest payments on business-related loans are deductible, excluding certain debts like personal credit card interest.
- Payroll Taxes: Employer-paid employment taxes, including Social Security and Medicare, are deductible expenses.
- Excise Taxes: Excise taxes on business purchases like alcohol and fuel are deductible.
- Personal Property Taxes: Taxes on removable business assets, like furniture and machinery, are deductible.
- Insurance Premiums: Premiums for business insurance coverage, including liability and workers' compensation, are deductible.
- Self-Employed Health Insurance: Deduct health insurance premiums for self-employed individuals on Form 1040, Schedule 1.
- Business Startup and Organizational Costs: Initial business setup expenses, up to $5,000 each for startup and organizational costs, are deductible.
- Bad Business Debts: Accrued debts deemed uncollectible are deductible under accrual accounting.
- Travel, Meals, and Lodging: Reimbursements for employee business travel expenses, including meals and lodging, are deductible.
- Advertising and Marketing Costs: Expenses for promoting your business, such as advertising and website fees, are deductible.
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- Car and Truck Expenses: Deduct vehicle-related expenses for business use, either through standard mileage rates or actual expenses.
- Charitable Contributions: Business charitable donations are deductible, subject to IRS guidelines.
- Club Dues and Memberships: Professional association dues are deductible, excluding certain memberships like country clubs.
- Franchise, Trademark, and Trade Name Fees: Fees for purchasing business identifiers are deductible.
- Interview Expense Allowances: Interview-related expenses for prospective employees, such as travel costs, are deductible.
- Legal and Professional Fees: Payments to business-related professionals like attorneys and accountants are deductible.
- Tax Preparation Fees: Fees for tax preparation services are deductible.
- Licenses and Permits: Costs for business licenses and permits are deductible.
- Penalties and Fines: Deductible penalties exclude those for legal violations.
- Repairs: Deduct minor repairs; capitalize major improvements.
- Subscriptions: Business-related magazine subscriptions are deductible.
- Supplies and Materials: Expenses for business supplies are deductible.
- Utilities: Utility payments for business premises are deductible.
- Depreciable Assets: Most asset purchases qualify for depreciation deductions.
- Payments to Contractors: Payments to independent contractors are deductible.
- Home Office: Deduct home office expenses based on square footage or actual expenses.
- Client Gifts: Deduct up to $25 per client gift.
- Continuing Education: Expenses for employee education are deductible.
- 401(k) Contributions: Employer contributions to employee 401(k) plans are deductible.
- Removal of Barriers for the Disabled: Expenses for accessibility enhancements may be deductible.
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