List of Common Business Deductions

To help you decide whether a particular expense is likely to be deductible, we've provided a list of the most common business deductions.

List of common deductible expenses:

• advertising
• bad debts from sales or services (for those using accrual accounting)
• bank fees on business accounts
• car and truck expenses
• commissions and fees
• cost of goods sold
• depreciation
• dues for trade associations and other not-for-profit, business-related organizations
• employee benefits
• gifts to customers, suppliers, etc.
• insurance premiums (casualty and liability)
• interest
• legal and professional services
• meals and entertainment
• office expenses
• pension and profit-sharing plans
• publications
• rent or lease expense
• repairs and maintenance
• services performed by independent contractors
• supplies and materials (not included in cost of goods sold)
• travel expenses
• utilities
• wages of employees

If you don't see an item you're interested in on this list, check our list of common nondeductible expenses as well.

The IRS form on which these deductions must be reported will depend on your form of business operation, that is, whether you're a sole proprietorship, partnership, LLC or corporation.

If you operate your business as a sole proprietorship, you will report business deductions on Schedule C of Form 1040. You can use the simpler Schedule C-EZ if you meet the following requirements:

• your business expenses are under $5,000;
• you do not have inventory;
• you do not have any employees;
• you use the cash method of accounting; and
• certain other requirements are met.

If you do business as a partnership, you'll file Form 1065.

If you operate as a corporation, you'll file Form 1120-A, Form 1120, or Form 1120-S for S corporations.

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