Deductible business expenses are hardships and costs that a company incurs in the course of conducting its operations. These costs can be anything from purchasing raw materials for products to advertising and marketing efforts. Companies can deduct these expenses from their taxable income, lowering the amount that has to be paid. However, there are some limitations on what can and cannot be deducted. The IRS requires businesses to maintain detailed and accurate records of all business expenditures, so that any deductions taken can be verified as legitimate. When it comes to deductible business expenses, companies should take into account the long-term benefits of taking tax deductions against the potential risks associated with not properly documenting their expenses.