Start A Business

Step 2: Business Expenses

You can deduct business expenses on your income tax return. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business, trade, or profession. A necessary expense is one that is helpful and appropriate for your business, trade, or profession. An expense does not have to be indispensable to be considered necessary.For a brief explanation of some of the most common business expenses that are of interest to people starting a business see business start-up costs, depreciation, car expenses and business use of home.