Coeur d’Alene Business Expense Guide

An ordinary expense is one that is common in your trade or Coeur d’Alene business.

A necessary expense is one that is useful and appropriate for your trade or Coeur d’Alene business.

The two biggest reasons why you might lose a business expense deduction are:

• you didn’t keep good tax records to prove your decision
• you must capitalize the expense

You could also lose deductions if the IRS thinks you aren’t operating the business to make a profit. This is commonly referred to as a “hobby business,” and its sole purpose is to create losses to offset income elsewhere.

Some common business expenses include:

• General business expenses
• Labor costs, including a salary or other compensation you receive as the owner-employee of your own corporation
• Repairs
• Inventory
• Mileage
• Office supplies
• Marketing and advertising
• Phone, internet and office utilities
• Travel Expenses

For Tax Resolution or Tax Preparation services in Coeur d’Alene Idaho click here.