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What business expenses are deductible?

IRS tax deduction explanation
2015 was the first year with speaking revenue.

 

How long does it take to start a business?

Personally, it took six years of spending (on average $1,000/month) without making a dime. In year seven (2015) i finally made my first dime.

i told my tax professional i have carried a deep fear the IRS would tell me, “You have been deducting expenses for six years without any income. Is this a hobby or a business?”

In year seven, 2015, i was blessed to not only have income, but have enough income that removed any doubt whether it’s a hobby or a business.

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that 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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By jeff noel

Retired Disney Institute Keynote Speaker and Prolific Blogger. Five daily, differently-themed personal blogs (about life's 5 big choices) on five different sites.