Business Deductions

Business Deductions

Category : Blog , sccm





Taxpayers can generally deduct ordinary and reasonable costs of running a business, but they must provide proof, including the business purpose of expenses. In one case, a married couple was denied deductions when they failed to adequately prove that costs such as travel, meals and entertainment related to the wife’s business. They also deducted living expenses they paid for their college-age kids, which they called “compensation” but failed to show how the costs were reasonable or business-related. Their arguments were deemed “unpersuasive.” (TC Memo 2018-63)


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