There is no definite answer for those of you who wish to know just what is tax deductible for a small business.
According to the painfully dry tax code, a business may deduct all expenses that are ordinary, necessary and reasonable.
Just what does that mean? Think about expenses that are helpful, appropriate and common in your line of work. Oh, and they can’t make you laugh.
Internal Revenue Service Code section 162 provides a list of what is tax deductible — including travel, meal and entertainment expenses — under the ordinary and necessary clause. It, however, is not exhaustive, leaving many expenses to your interpretation.