What is the difference between business expenses and deductions?

What is the difference between business expenses and deductions?

Business expenses are costs incurred in the ordinary course of running a business, while deductions are specific expenses that can be subtracted from total income to reduce taxable income.

Can you give me some examples of business expenses?

Sure! Examples of business expenses include rent, utilities, salaries, and office supplies.

How do deductions affect my taxes?

Deductions lower your taxable income, which can reduce the amount of tax you owe. The more deductions you have, the less tax you may pay.

Are there limits on how much I can deduct?

Yes, there are limits on certain deductions, and some expenses may not be fully deductible. It's important to check IRS guidelines or consult a tax professional.