All allowable costs of producing self employment income. See: Income -- Special Income Types - Self-employment income - General rules; Income -- Special Income Types - Self-employment income - Allowable expenses; and Income -- Special Income Types - Self-employment expenses that are not allowed as income deductions
Many, but not all, outgoings of a business can be set against total income when arriving at taxable profits.
Expenses of a business incurred in earning the profits of the business. Not all business expenses are allowable for tax purposes.
Business expenses are costs you do not have to capitalize or include in the cost of goods sold. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary. Examples of business expenses are depreciation, vehicle expenses, interest, insurance, real estate taxes, and advertising.
Business expenses consist of charges for business phone calls, faxes, and telegrams; emergency clothing, equipment, or supply purchases that are job related; and other charges necessary to the completion of official business while on travel status.
Certain costs that are reasonable for a particular type of business, and that are incurred for the purpose of earning income. Business expenses can be deducted for tax purposes. Personal, living, or other expenses not related to the business cannot be deducted for tax purposes.