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Category: Other Tax Forms

What Business Expenses Can I Deduct?

Schedule C, Profit or Loss from a Business, is used to report:

 

A)  Your income and expenses from the operation of a business

 

and/or

 

B)  Wages and expenses you had as a statutory employee.

 

 

Business expenses are the costs of running your business.  To be deductible, Business Expenses must be common, accepted and appropriate expenses for your trade.  The following expenses may be deductible on your Schedule C:

 


Cost of Goods Sold

 

  • Cost of products

  • Storage

  • Direct labor costs

  • Factory overhead

 

General Expenses

 

  • Advertising

  • Contract labor

  • Commissions and Fees

  • Depletion

  • Employee Benefits Program

  • Health insurance

  • Insurance (other than health)

  • Mortgage interest

  • Legal and professional services

  • Office Expenses

  • Pension and profit sharing

  • Rent or lease of equipment

  • Rent or lease of property

  • Repairs and maintenance

  • Supplies

  • Taxes and licenses

  • Travel

  • Meals and entertainment

  • Utilities

  • Wages

 

Car and Truck Expenses

 

  • Mileage

  • Depreciation

 

Other Expenses

 

  • Not reported elsewhere

 

Business Use of Home

 

  • Casualty losses

  • Mortgage interest

  • Real estate taxes

  • Excess mortgage interest

  • Insurance

  • Rent

  • Repairs and maintenance

  • Utilities and services

  • Other Expenses

  • Depreciation

 

For more information, please review the Instructions for Schedule C on the IRS website.