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Career Insights Dear Son Tax Tips

Small Business Tax Tips: To Deduct Or Not Deduct?

Dear Son, if you become a small business entrepreneur, seek out tax tips and clarification. Here’s one of the most basic, yet powerful, straight from “IRS Tax Tips, January 24, 2011”:

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

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