How Do You Categorize Expenses for A Small Business?

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Why You Need to Categorize Business Expenses
How to Categorize Business Expenses
What Is a Deductible Business Expense?
What Are the Business Expense Categories?
Rent
Vehicle Expenses
Lease Loan interest Gas Mileage (check the IRS’ standard rate for the year) Registration and fees Insurance Repairs and maintenance Parking
Advertising
Travel Expenses
Food and Entertainment
Office Supplies
Payroll
Services and Utilities
Loans
Taxes
What Can I Write Off for Business Expenses for a Home Office?
The simplified option. If you choose the simplified option, you will be asked for the size of your office space. This number is multiplied times a prescribed rate to determine your home office deductions. The regular method. Because you use a portion of your home for your office, you can deduct a portion of your home’s expenses, including rent or mortgage, utilities, internet, and home repairs. So you’ll need to track those expenses and then determine what percentage your home office used, based on its size in proportion to your home’s total square footage.
The Takeaway
Frequently Asked Questions
Photo credit: iStock/Lyndon Stratford
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About the Author
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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