September 15, 2016

Where Can I Get A List Of LLC Tax Deduction Items?

Where I can get a list of LLC tax deduction items?

– Henry, California

Answer

Henry, excellent question, that I’m going to have to get back to you on.

The general answer is that you can deduct all “ordinary” and “necessary” expenses related to your business.

However, I know what you’re looking for is a list of specific types of expenses (is advertising “ordinary” and “necessary” — yes, it is).

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Deducting-Business-Expenses Has a general list of the categories of business expenses that are deductible.

While http://www.irs.gov/publications/p535/index.html is much more comprehensive and in-depth.

With regards to ordinary and necessary business expenses, the next distinction to make is between currently deductible expenses and capital expenses. Deductible expenses are subtracted in their entirety from your company’s revenue to determine taxable income during the year the money was spent (if you’re using cash accounting). Capital expenses can only have part of the cost deducted each year in a process called “depreciation”. The number of years it takes to fully depreciate a capital expense depends on the type of capital purchased (equipment, real estate, etc.) and is determined by IRS rules.

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