When the New Year has come around, the same question arises: What expenses can you write off? Addressing this very common concern is a simple process, and if you are in business, it will not take you long to understand the procedures. In the world of accounting, the write-offs are the amounts that can be claimed as an expense against income.
What expenses can you write off
Probably the simplest write-off available is the reimbursement for business expenses. When the expenses incurred are ‘prudent’ as agreed and approved by the company, the expense can be reimbursed back against the income itself.
The Internal Revenue Service (IRS) approved use includes the following:
1. The cost of meals arranged (free measure else to the meals and entertainment account or the business meal accounts)
2. The cost of cruises and vacations (cost of meals or tickets discounted from the normal purchase)
3. The cost of style and personnel (clothes, industry uniforms, office supplies, viewing, and entertainment)
4. The cost of business transportation (airfare, train or car rentals, oil or fuel)
5. Any expenses incurred while exiting an employer’s business, including that time the employee moonlighted
6. The cost of tolls or parking fees paid, as long as these expenditures are for transporting a dependable element of the employer’s business.
Some of the items that are not business-related and have to be included in return for write off are charitable contributions, gambling losses, casualty or theft losses, or the insurance premiums paid.
Most write-offs are automatic, meaning, the same dollar amount is treated as earned or expenses attributed to other deductions must be identified and added to the current year’s income.
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