Types of Business Expenses

Taxpayers can deduct the costs of running their business—otherwise known as business expenses. A business expense must be both ordinary and necessary to be a deductible expense. An ordinary expense is one that is common and accepted in the taxpayer's industry. A necessary expense is one that is helpful and appropriate for the taxpayer's trade or business. Examples of these expenses include the following:

For details, see Schedule C instructions for examples of these types of expenses.