Tax Resources

Tax Deductible Items

Tax deductible items fall into two broad categories. The first category of tax deductible items are those expenses that are fully tax deductible in the year which they are incurred. The second type of tax deductible items are those expenses that are depreciated or tax deductible over a fixed period of time. Below are some tax deductible items or list of things that are tax deductible. See for more List of Tax Deductibles.

Tax deductible items

Tax deductible items - depreciable expenses

Tax deductible items that are fully tax deductible are all expenses incurred in the operation of your business. These are fully tax deductible expenses in the year they occur. Fully tax deductible items reduce your net income by their amount. You need to itemize fully tax deductible items and keep all receipts for verification in case of an IRS audit.

Some expenses are not fully tax deductible items but depreciation expenses. If you purchase a property that has an expected life of more than one year and you do not intend to resell it, then it is a depreciable expense. The cost must then be spread over time over the useful life of the property.

When listing tax deductible items on your federal or business tax returns, do not list the same item as both tax deductible item and a depreciated item. You should keep fully tax deductible items separate from depreciable expenses.

Itemized Tax Deductions

Tax Questions