Tax deductions

Tax deductions for business expenses: 12 facts to know

A business expense deduction is an authorized deduction for ordinary and necessary expenses paid or incurred in the course of an individual’s trade, business or profession.

The deduction allowed under Section 62 (a) (1) of the Internal Revenue Code for expenses of a trade or business is the provision that technically allows business income to be taxed on the base of net income, whether it is a business or a business of individual taxpayers operating as sole proprietors or associates.

Are you properly advising your clients on business expense deductions? In the gallery above, you’ll find 12 important tax and financial planning questions and answers advisers should know when it comes to business expense deductions, according to ALM’s Tax Facts Online.

(Graphics: Chris Nicholls / ALM)


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