As a small business owner, you have the opportunity to deduct certain expenses from your taxes. Don’t let yourself get carried away though; there are some expenses that are not deductible, regardless of the situation. Just as a reminder, below are some common expenses that CANNOT be deducted as a business expense.
Clothing—Unless it is protective gear, or a uniform not to be worn during non-working hours, clothing cannot be deducted.
Commuting Expenses—The cost of transportation from your home to your main/regular place of work.
Life Insurance Premiums—If the business or the business owner is a direct or indirect beneficiary, the expense cannot be deducted.
Lunches with Co-workers—Meals with co-workers are nondeductible, unless traveling away from home on business.
Personal Legal Expenses—For example, legal fees relating to custody of children, divorce, preparation of a will, and personal injury claims are nondeductible.
Political Contributions—Political donations and lobbying expenses to influence voters are not deductible.
Residential Telephone Service—The first telephone line to your residence is nondeductible even if used in a trade or business.
Health Club, Social Club or Country Club Dues—In general, club fees and weight loss programs are nondeductible, even if your job requires to you stay in shape. (Note: If certain conditions are met, the expense may qualify as a medical expense.)
Fines and Penalties—Traffic tickets, tax penalty payments, and violations of law are not deductible expenses.
