Examples of Non-Deductible Business

Business Expense Category Examples of Deductible Business Expenses Expenses Tax Sole
FormProps:
To Claim Deduction
Schedule C
Employee Wages Wages, Salary, Bonuses, Commissions, Vacation,
Reimbursement or payment of tuition, books and other expenses Sick pay Partnerships: Form 1065
Sole Props: Schedule C
Employee Education Expenses for an employee
Accident & Health Plans, Adoption Assistance, Cafeteria Plans, Partnerships: Form 1065
Sole Props: Schedule C
Employee Benefits Dependent Care Assistance, Life
Office space, Equipment rental, Leased warehouse Insurance Rent payments made on property that you Partnerships: Form 1065
Sole Props: Schedule C
Rent Expense Leased
Taxes paid vehicles
to a lessor on leased office space, equipment and own or have equity or title to the property Partnerships: Form 1065
Sole Props: Schedule C
Taxes for Leased Business Property vehicles
Interest paid on all loans, lines of credit and other liabilities incurred loans with respect to life insurance policies Partnerships: Form 1065
Sole Props: Schedule C
Business Interest on Debt for Trade or Business for your trade or business
Social Security taxes Medicare taxes Unemployment taxes State Interest on personal loans, credit cards Partnerships: Form 1065
Sole Props: Schedule C
Payroll Taxes and Federal Income taxes Partnerships: Form
type of property: 1065
Real Estate Taxes Property taxes paid on real estate Form 8829, Sch A, Sch E
Excise Taxes An additional tax paid for items such as: alcohol,
A tax imposed by a state or local government on personal property tobacco, fuel
Personal Property Taxes used in your
insurance ontrade
vehiclesor business.
used for business Life insurance for officers
Insurance Premiums and employees
Amounts paid for (you are not
medical, the beneficiary)
dental and qualified long-term care Sole Props: Schedule C or A
Self-Employed Health Insurance insurance
partnership A survey ofyour
for yourself, spouse,
potential and your
markets dependents
Salaries and wages for Partnerships: Form 1065
Sole Props: Schedule C
Business Start-Up Costs and Organizational Costs trainee-employees and their instructors
Unpaid amounts not received from a customer for services Partnerships: Form 1065
Sole Props: Schedule C
Business Bad Debts rendered can be deducted as bad debt
employees on behalf of a business are deductible. Meals & Partnerships: Form 1065
Sole Props: Schedule C
Reimbursement of Travel, Meals and Entertainment to EmBusiness
Entertainment cards, are subject
flyers, to a 50%
website limit paid to companies like
and fees Partnerships: Form 1065
Sole Props: Schedule C
Advertising/Marketing Costs Constant Contact to send promotional emails Partnerships: Form 1065
Sole Props: Schedule C
Car and Truck Expenses Gas, repairs,made
Deductions registration fees,charities,
to qualified miles driven for business
501(c)(3) are deductible; designated nonprofits are generally not Partnerships:
Sole Form 1065
Props: Schedule A or C
Charitable Contributions deductions
Business are limited
leagues to no more
Chambers than 50%Civic
of commerce of your gross service
or public income Country
deductible.
clubs Golf & athletic clubs Hotel Partnerships: Form 1065
Sole Props: Schedule C
Club Dues and Membership Fees orgs Professional orgs Real estate boards Trade associations clubs Sporting clubs Airline clubs Partnerships: Form 1065
Sole Props: Schedule C
Franchise, Trademark, Trade name Costsexpenses
other incurred torelated
purchase a franchise,
to interviews; trademark
meals or trade
are subject name.
to 50% Partnerships: Form 1065
Sole Props: Schedule C
Interview expense allowances limit.
Fees paid to attorneys and CPAs who provide services to your Partnerships: Form 1065
Sole Props: Schedule C
Legal and professional fees trade paid
Fees or business.
to an Enrolled agent or CPA who prepares your tax Partnerships: Form 1065
Sole Props: Schedule C
Tax preparation fees return.
Business license, liquor license, realtor license and other permits Partnerships: Form 1065
Sole Props: Schedule C
License and Permits required for
Penalties your
paid fortrade or business. or nonperformance of a
late performance law (i.e. parking tickets, speeding tickets, Partnerships: Form 1065
Sole Props: Schedule C
Penalties and fines contract. leaks - (Note: major repairs that will increase the value of health department fines)
plumbing Partnerships: Form 1065
Sole Props: Schedule C
Repairs the property are
Subscriptions to subject to depreciation)
professional, technical, and trade journals for your entertainment purposes; Time, People, US Partnerships: Form 1065
Sole Props: Schedule C
Subscriptions business
Office field. cleaning supplies, books, printer ink, paper, light
supplies, magazine. Partnerships: Form 1065
Sole Props: Schedule C
Supplies and Materials bulbs etc; Any portion of utilities for personal use and Partnerships: Form 1065
Sole Props: Schedule C
Utilities Electricity,
Monthly Air conditioning/heat,
service charges and feeslandline, paid forwater and sewerage,
telephone service in a gas taxes
not your
for trade or business
the first telephone line you have Partnerships: Form 1065
Sole Props: Schedule C
Telephone commercial
Under office
Sec 179, upspace.
to $1MM (See Homecan
(2018) Office for more details)
be deducted in the first in you home. Partnerships: Form 1065
Depreciable Assets year property, equipment or a vehicle is purchased
design firms and anyone who provides a service to your trade or IRS Form 4562
Sole Props: Schedule C
Payments to 1099 Contractors business.
percentage of the following expenses: business like: Partnerships: Form 1065
Home Office Utilities Real estate
SEP IRA: 25% of your income taxes Insurance Deductible mortgage interest Lawn care Pool service SoleIRS Form
Props: 8829 C
Schedule
401k Plan Contributions Roth IRA: $5,500 Partnerships: Form 1065
Sole Props: Schedule C
Client Gifts Gifts
providepurchased
you with for clients are
continuing deductible
education up to
credits for$25.
your trade or Any client gift amount that exceeds $25. Partnerships: Form 1065
Sole Props: Schedule C
Continuing Education business. Partnerships: Form 1065