(208) 425-1545 contact@cdaaccounting.com

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.