Did you know that a television could qualify as a business deduction?
What? That doesn’t make any sense. A television is clearly a personal expense that is not deductible as a business expense.
Have you seen televisions in customer waiting rooms, or perhaps used at your job to show training videos. Is that deductible? Yes of course do you see the difference? The television is deductible based on its business use and not based on the fact that it is simply a television.
IRS code 162 defines business expenses as ordinary and necessary items needed to produce revenue for a business. This code section generates lots of disputes between taxpayers and the government as to what is really deductible.
So the point here is to see that whether an item is deductible is based on how it’s used. Understanding this point do you think you may have missed some business deductions on prior returns.
You may need the experience of a tax professional to guide you as to what is deductible and what is not deductible.