Close Close
ThinkAdvisor

Business Expense Tax Deductions: 12 Facts to Know

X
Your article was successfully shared with the contacts you provided.
X
Your article was successfully shared with the contacts you provided.

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)

___________________

  • Learn more with Tax Facts, the go-to resource that answers critical tax questions with the latest tax developments. Online subscribers get access to exclusive e-newsletters.
  • Discover more resources on finance and taxes on the NU Resource Center.
  • Follow Tax Factson LinkedIn and join the conversation on financial planning and targeted tax topics.
  • Get 10% off any Tax Facts product just for being a ThinkAdvisor reader! Complete the free trial form or call 859-692-2205 to learn more or get started today.