Business expenses are the costs of carrying on a trade or business. They are deductible if the business operates to make a profit, and they must be both ordinary and necessary. Ordinary expenses are those that are common and accepted in the industry. Necessary expenses are those that are deemed appropriate and helpful for the operation of the business. Examples of typical business expenses include salaries, office supplies, utilities, advertising, legal fees, travel costs, insurance premiums, facility rental fees, labor-related expenses, depreciation expenses, and the cost of goods sold. Keeping track of these expenses is essential when preparing taxes as margin revenue can be reduced by the amount of expense claims.