{"id":4629,"date":"2016-04-04T10:47:36","date_gmt":"2016-04-04T15:47:36","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-taxes\/small-business-tax-information-faq.html"},"modified":"2024-05-23T02:02:41","modified_gmt":"2024-05-23T07:02:41","slug":"small-business-tax-information-faq","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/small-business-tax-information-faq.html","title":{"rendered":"Small Business Tax Information FAQ"},"content":{"rendered":"\n
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Small Business Tax Information FAQ<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last reviewed\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Often times, setting up and operating a small business<\/a> feels more like a do-it-yourself and learn-as-you-go enterprise. While this freedom provides flexibility to adapt to changing market environments, it can also put a lot of weight on your shoulders especially when it comes to business planning and taxes.<\/p>\r\n

To help lighten your load, FindLaw has prepared answers to some common questions you may have about small business taxes<\/a>.<\/p>\r\n

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What’s considered a tax deductible small business expense?<\/h2>\r\n

According to the tax code, just about any business expense<\/a> that is "ordinary, necessary and reasonable" will qualify as a deduction that will decrease the profits of your business for tax reasons. But what are considered ordinary and necessary expenses? According to the Internal Revenue Service (IRS), these are any expenses which are "helpful and appropriate"<\/a> for you business.<\/p>\r\n

For example, if you purchase a new computer for your small business, or buy stationary to send out your mailings, these expenses would probably be considered ordinary and necessary. However, if you buy a new computer for your son to use in his room, this would not be a business expense even if you ran your small business from home.<\/p>\r\n

There are a few expenses that are explicitly prohibited from being considered an ordinary and necessary business expense, such as:<\/p>\r\n