Business Expense Deductions

Business expense deductions allow a business to subtract certain costs from its income, reducing the taxable amount and ultimately lowering taxes owed. These expenses must be ordinary and necessary for the business's operations, such as supplies, travel, rent, and advertising. Proper documentation is essential to substantiate these deductions. By deducting eligible expenses, businesses can improve cash flow and profitability, ensuring they only pay taxes on their net income after legitimate costs are accounted for.