Adam Greene CPA's Blog

Certified Public Account in Melville, NY

Deductible Business Expenses

As a certified public accountant and Partner at Greene & Company, L.L.P., Adam Greene provides tax preparation services to small businesses. Many business owners are unsure of what types of expenses they can write off as deductibles. Adam Greene offers the following information about deductible expenses.

1.    For-profit businesses can deduct most expenses associated with the cost of doing business. For example, you can deduct employee wages, insurance, supplies, and business location expenses.

2.    When you purchase a durable asset, you cannot write it off as a business expense, and you can deduct depreciation or depletion every year.

3.    If you use part of your home as a business office, you can deduct a percentage of your home expenses such as mortgage and utilities. You must regularly or exclusively use the office for business and show that it is your principle place of business in order to be able to deduct the room.

4.     You can deduct travel expenses for trips that are entirely business-related. This may include transportation costs, lodging, and 50 percent of meals, as well as “life on the road” expenses such as dry cleaning. If you do not take the trip solely for business, then you can only deduct the portion of costs that are related to business.

5.    You can deduct vehicle expenses if you use it for business purposes. Maintain a business mileage log if you use a vehicle for both company and personal use.

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