Deductions & credits


@mital1982 wrote:

so locum agencies which have long term contract , pay for lodging and plane travel and get deduction on their bussiness. 

 


No, they don't.   Well, sort of.

 

If the business pays those expenses for a long-term contract as a self-employed person, that is not a deduction. 

 

If they pay those expenses for an employee or Independent Contractor, that is wages (or payment for a contractor) to the employee or contractor.   Because the business is paying the employee or contractor, that extra wages/payment is a deduction for the business.  But because the employee or contractor is paying taxes on that amount, it effectively means that is not a business deduction.