Can you prove it?
Business owners can generally deduct ordinary and necessary expenses, if they can prove the costs are bona fide and business related. In one case, a married couple were officers in a mortgage business. The U.S. Tax Court ruled they were eligible to deduct the cost of a promotional mailer as an advertising expense. As proof, they used the husband’s credible testimony and a copy of the original invoice, and showed a bank debit for the same amount. Other deductions, however, such as office rent and furniture, were limited, due to lack of proof. (TC Memo 2018-102)