100% Deductible Business Expenses?

What business expenses can be 100% deductible?

Good question.

One that your email box would not be large enough to list or our memories large enough to contain all the items.

The answer is much simpler than the question.

All expenses that are incurred 100% legitimately for business purposes are 100% deductible. You just need the right “Business Statement:” the story of why it is directly related to business.

All the rest of the expenses are in direct relationship to the personal benefit that is directly derived, on a scale of zero to a hundred. For example, your home may be 20% personal, therefore the deductible amount is 20% of the total cost of home ownership.

If you use your computer 50% for personal and 50% for business, it would only be 50% deductible; if you use your computer only for business, then it is 100% deductible.

Remember that in deciding what is deductible or not, it is important to “Think Correctly:” do not think about what is deductible, but rather think about how it relates to your business. The aforementioned is a good example and it is a required way to think.

The other point you need to remember is that if the purchase is considered an asset, then that is treated differently. If the purchase price of the Asset is less than $500 then you can write the entire item off in the year of purchase. If the item is over $500 then how much you can depreciate it will depend on what class it is.