Related: 15 Capital Gains Tax Facts to Know
A business expense deduction is a deduction allowed for ordinary and necessary expenses paid or incurred in connection with an individual’s trade, business or profession.
The deduction allowed under Internal Revenue Code Section 62(a)(1) for expenses of a trade or business is the provision which technically allows for business income to be taxed on a net income basis, whether it be a corporate business or the business of individual taxpayers operating as sole proprietors or partners.
Are you advising your clients correctly when it comes to business expense deductions? In the gallery above are 12 important tax and financial planning questions and answers advisors should be aware of regarding business expense deductions, according to ALM’s Tax Facts Online.
(Graphics: Chris Nicholls/ALM)
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