Entrepreneurial

What is tax deductible for small business?

A woman fills out an income tax form in New York. REUTERS/Mike Segar

A woman fills out an income tax form in New York. REUTERS/Mike Segar

– Stephanie Rabiner is a contributor to FindLaw’s Free Enterprise blog. FindLaw is a Thomson Reuters publication. This article originally appeared here. –

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.

Common budget mistakes for tech startups

A call centre personnel uses a calculator as she answers a call from a investor at an online brokerage company in Tokyo October 23, 2008. REUTERS/Yuriko Nakao

A call center employee uses a calculator in Tokyo. REUTERS/Yuriko Nakao

– Ed Buchholz is the co-founder and CEO of 60mo, a cloud-based financial services company catering to small business owners. The views expressed are his own. –

Most everyone is familiar with the cliché: more money, more problems. But what if the problem is money?

Keeping your tech startup solvent requires the avoidance of several common budget mistakes. A budget or lack thereof can make or break a startup. Keep your overhead intact by doing the following:

  •