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Case Study 1: Types of Business ExpensesWendy is a self-employed masseuse. She does neck massages for office workers and travels to three office buildings each work day. It is 10 miles from home to the first office and 5 miles from the last office back home. These 15 miles are commuting miles and, therefore, not deductible. It is 13 miles from the first office to the second office and 5 miles from the second office to the third office. Wendy drives a total of 33 miles each work day; 18 miles are deductible. Click here for an explanation. Taxpayers 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 taxpayer who uses a car or truck in a business may be able to deduct the costs of operating and maintaining the vehicle. Vehicle expenses can be calculated using actual expenses or the standard mileage rate. 
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