What expenses can I deduct?

10 September 2013 / Uncategorized / Comments Off on What expenses can I deduct?

Welcome to another edition of Tuesday's Tidbits where we make tax and accounting simple, I'm your host Charles D. Shapero, CPA and today we're going to talk about what expenses you can deduct as a business owner. Would you believe that the Internal Revenue Code that you cannot deduct any expenses. It's true, all deductions are a matter of whats called legislative grace. Luckily, the legislature has seen fit to pass code section 162, it's a very important code section for business owners because it allows us to deduct anything that's an ordinary and necessary expense to our business. Is a trip to Hawaii a necessary deduction? Maybe not for a dentist. But what a real estate investor who wants to go look at rental properties in Hawaii? Possibly. What about a travel agent that needs to be able to talk about travel to Hawaii, possibly. But when a taxpayer does that and he takes his whole family that's a mixture of business and personal. Can he deduct his airfare? More than likely. Can he deduct his wife and kids? More than likely....not. When your looking at what expenses can I deduct come down to the ordinary and necessary and kinda talk that through. Or you can feel free to give the experts at Widget Bookkeeping & Tax a call, we'll help you walk through it. This concludes todays Tuesday Tidbit. See you next Tuesday. Widget Bookkeeping & Tax, Know more, Keep More.