However, section 162 is so important when it comes to figuring out a small business' tax deductions that it is worth putting in here (at least a portion of it). In general, it is painful to read the actual tax code. You could land in hot water if you don't! Internal Revenue Code Section 162 - The "Ordinary and Necessary" Expenses of Doing Business However, you must always be careful to play by the rules that the Internal Revenue Service (IRS) has set out. In addition, by maximizing your tax deductions, you could get some personal benefits as well - perhaps a new business car, a business trip/vacation, or even a retirement plan. By doing so, you will lower your small business profit and minimize your taxes. So, in order to minimize your taxes on your small business, it is always best to maximize your small business tax deductions. Remember that whatever you are left with (your profit) after making your small business tax deductions is what you will get taxed on. Just how much you are able to deduct as a "cost of doing business" is very determinative of how much you will get taxed. If you own a small business, you probably already know about how your small business gets taxed at the end of the year. In the normal course of things, you should be able to reduce your business taxes by making small business tax deductions.
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