Business Expenses

This publication discusses common business expenses and explains what is and is not deductible. The general rules for deducting business expenses are discussed in the opening chapter. The chapters that follow cover specific expenses and list other publications and forms you may need.

We welcome your comments about this publication and your suggestions for future editions.

You can write to us at the following address:

Internal Revenue Service 
Business Forms and Publications Branch 
SE:W:CAR:MP:T:B 
1111 Constitution Ave. NW, IR-6526 
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

You can email us at *taxforms@irs.gov. (The asterisk must be included in the address.) Please put "Publications Comment" on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.

Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received.

 
Internal Revenue Service 
1201 N. Mitsubishi Motorway 
Bloomington, IL 61705-6613

If you have a tax question, check the information available on www.irs.gov or call 1-800-829-4933. We cannot answer tax questions sent to either of the above addresses.

The following items highlight some changes in the tax law for 2009.

For 2009, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 55 cents per mile.

For tax years beginning in 2009, the 100% taxable income limit does not apply to percentage depletion on the marginal production of oil and natural gas. See chapter 9.

The following items highlight some changes in the tax law for 2010.

The standard mileage rate for the cost of operating your car, van, pickup, or panel truck in 2010 is 50 cents a mile for all business miles.

The election to deduct qualified environmental cleanup costs has expired for costs paid or incurred after 2009. If it is extended, the change will be highlighted under What's Hot in forms and publications at www.irs.gov/formspubs. See chapter 7.

You can file your tax returns electronically using an IRS e-file option. The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. You can use one of the following IRS e-file options.

• Use an authorized IRS e-file provider.
• Use a personal computer.
• Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site.

For details on these fast filing methods, see your income tax package.

File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year in the course of your trade or business at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, and crop insurance proceeds. See the Instructions for Form 1099-MISC for more information and additional reporting requirements.

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.