Business Expenses For Taxes

Business expenses are the costs incurred in order to generate business income. They can be deducted from annual gross income to help reduce taxable income and ultimately lower tax liability. Examples of legitimate business expenses include rent or mortgage payments, salaries and wages, cost of materials, advertising and promotional expenses, insurance premiums, utilities and telephone services, depreciation and interest expenses, fees for professional services, repairs and maintenance fees, legal and accounting fees, travel expenses, employee benefits and bonuses. By deducting these expenses from total revenues, business owners can gain a more accurate picture of their company’s bottom line.