Business Deductions

Business deductions are expenses that a business can subtract from its total income to reduce its taxable income. This means the business only pays taxes on the profit after these deductions are applied. Common deductions include costs like rent, utilities, employee wages, supplies, and marketing expenses. By claiming these deductions, businesses can lower their tax bill, allowing them to reinvest in operations and growth. It's crucial for business owners to keep accurate records and understand what qualifies as a deductible expense to maximize their tax benefits while remaining compliant with tax laws.