Deductions for business expenses refer to deductions allowed by the Internal Revenue Service that allow businesses to offset their income with costs incurred while operating their business. This can include items such as rent, repairs, insurance, and other necessary expenditures that are directly related to the running of a company. By utilizing deductions, businesses are able to reduce their taxable income, therefore reducing the amount of tax they need to pay. It’s important for businesses to track all of their expenses in order to maximize their deductions and thereby limit their tax burden.