Small Business Investing

Starting a Business

Can I deduct expenses to offset taxes if I own my own company?

In general, you may deduct many categories of ordinary and necessary expenses to conduct a trade or business. An ordinary expense is one commonly used and accepted in your trade or business. A necessary expense is one that is appropriate for your business. Generally, an activity qualifies as a business if you operate it with a reasonable expectation of earning a profit. For more information on business expense deduction guidelines, see IRS Publication 535, Business Expenses.


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