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Posted in Tax Deductions Q & A
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expenses are not always deductible as a tax deduction.
Penalties are an expense, since you have to pay them, but they aren’t a tax deduction.
Federal income tax is an expense, but not a tax deduction.
Meals & Entertainment is an expense but only 50% tax deductible.
Life insurance is an expense but not deductible (unless it is life insurance for employees).
Depends on how you have your business set up legally. Check the tax codes.
Some expenses are tax deductible.
More info:
http://www.irs.gov/publications/p535/ch01.html
See the instructions for Schedule C for expenses which can be entered there.
The term "deductions" applies to what is entered on Schedule A. See those instructions for which deductions can be entered.
Generally, there is not much difference.
Expenses are generally tax deductions of the business. However there are some expenses that are not tax deductible (50% of meals & entertainment expenses, penalties and fines, payments for life insurance).
1. Some expenses are not deductible.
2. The year you pay is not always the year you deduct, especially for depreciated capital equipment.