What are Business expenses and how are they defined?

Many people are asking me what business tax deduction can they take on their tax returns. However, many people don’t understand taxes and don’t understand what makes a tax deduction a legitimate business expense.

There are usually four things that makes a business expense a legitimate tax deduction.

1.) It needs to be business related;

2.) it needs to be an ordinary to your business;

3.) it needs to be necessary to your business;

4.) it must not be extravagant When you combine these 4 elements you have a actual business experience that becomes a legitimate tax deduction/tax write off.

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