It’s tax time. Make sure you have an accountant who can ensure you maximize your deductions. Here’s some tips I found on the Hartford Insurance Website. The link for more information about what can be included in each of these categories is at the bottom.
List of Business Expense Categories
The IRS says a business expense must be ordinary, necessary and directly related to running a company to be deductible. Most business expenses fall into specific categories. Schedule C, the IRS form which sole proprietors use to report their income, lists 20 broad business expense categories that include:
Car and truck expenses
Commissions and fees, contract labor
Depreciation and section 179 expense deduction
Employee benefit programs
Legal and professional services
Pension and profit-sharing plans
Rent or lease
Repairs and maintenance
Taxes and licenses
Travel and meals
Categorizing expenses is an important part of keeping good business records. The IRS wants business expenses accounted for and reported in the correct categories so it can determine if the deductions are legitimate. Categorizing expenses correctly will also mean a smaller bill from your accountant at tax time.