How do I know if an item is a legitimate, deductible business expense?
Any expenditure related to the active conduct of your business can be justified as an appropriate business expense. However, it is critical to maintain proper records and supporting documents. Your bookkeeping records should clearly show assets, liabilities, gross income, and deductions. These amounts should be supported by invoices, receipts, deposit slips, and canceled checks. Special records are required and should be maintained for travel, entertainment, gift, or transportation expenses. Edward M. Polansky What are some things that are often overlooked as business deductions? Employing the spouse or a child in the business; contributing to a Self Employment Pension (SEP), SIMPLE, 401(k), or other retirement plan; maintaining a qualified home office; turning charitable donations into business deductions by giving money to charities in exchange for advertisement; and turning nondeductible vacation expenses into deductible business travel expenses. Edward M. Polansky Do I have to make
