Did you know that interest paid on money borrowed to purchase an investment property can be a deductible investment expense on your federal tax returns? 1
The cost of bandages might be considered a deductible medical expense on your federal tax return, even without a prescription. 2
Per the IRS, you don’t need to actually make a profit to be in a trade or business as long as you have a profit motive. You do need to make ongoing efforts to further the interest of your business, though. 3
If someone owes you money you cannot collect, you have a bad debt. A business bad debt is generally one that comes from operating your business. You may be able to deduct business bad debts as a expense on your business tax return. 4
Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on your business tax return. 5
1 The Tax Book. 2019 Deluxe Federal Version.
2 The Tax Book. 2019 Deluxe Federal Version.
3 IRS Publication 334. For Use in Preparing 2021 Returns.
4IRS Publication 334. For Use in Preparing 2021 Returns.
5IRS Publication 334. For Use in Preparing 2021 Returns.