What deductions can I claim for my business?

In California, the deductions you can claim for your business will depend on the type of business you have and other factors. Generally, you can usually deduct the necessary and ordinary expenses your business incurs in operating your business. This can include the cost of goods and services you purchase for your business, employee salaries and wages, rental fees for business space, and other costs related to running your business. California also allows you to deduct certain types of business-related taxes from your taxes, such as the state income tax, franchise tax, and state sales tax. You can also deduct local taxes, such as property taxes and local income taxes, and any taxes related to purchasing equipment or supplies for your business. If you have employees, you can deduct certain types of employment taxes, such as Social Security, Medicare, and federal unemployment. Also, you may be able to deduct contributions you make to employee benefit plans (health, dental, and disability insurance). Keep in mind that while you may be able to deduct certain expenses, you must be careful to not deduct expenses that are more than what the law allows. In addition, you should always keep receipts and other documentation regarding any business expenses you deduct. This will help to ensure that the deductions you are claiming are legitimate.

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What deductions can I claim for my business?

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