If you’re self-employed or own a small business, you can deduct eligible business expenses to pay fewer taxes. These expenses must be common for your type of business and also necessary for your operations.
For any expenses split between personal and business use, be sure to deduct only the business portion from the total cost. Always keep records of your expenses in case the IRS asks to see documentation.
Note: If you use an expense to figure out the cost of goods sold, you can't also deduct that expense. Also, certain costs that are part of an investment in your business must be capitalized, rather than deducted. For more information, visit the IRS page on deducting business expenses.