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Tax Deductions

A tax deduction (tax write-off) is an expense that a business owner is entitled to subtract from their gross income, resulting in lowering their taxable income (the amount on which they are taxed on.)

There are three types of deductions in tax return: personal, business and investment deductions. Business deductions are based on expenses that are spent to run the business. The IRS taxes on profit, not on gross income. The key point here is that the more you deduct, the lower your profit (taxable income) will be. The important rule here is all deductions should be done within the legal limitations. All tax deductions should be supported by records or documents.

Types of Deductions

Start-up expenses

Business operating expenses

Car Expenses

Business  travel expenses

Meal and entertainment expenses

Home office business

Long-term assets deduction

Retirement plan deduction

Medical expenses

Advertising expenses

Education expenses

Other deductions