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Publication 535

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.

Comments and suggestions.(p1)

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
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 * (The asterisk must be included in the address.) Please put "Publications Comment" on the subject line. You can also send us comments from, select "Comment on Tax Forms and Publications "under "Information about."
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
Ordering forms and publications.(p1)
Visit 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

Tax questions.(p2)
If you have a tax question, check the information available on or call 1-800-829-4933. We cannot answer tax questions sent to either of the above addresses.

What's New for 2011(p2)

Standard mileage rate.(p2)
For 2011, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is:
  • 51 cents per mile for the period January 1 through June 30, 2011, and
  • 55.5 cents per mile for the period from July 1 through December 31, 2011.
Self-employed health insurance deduction.(p2)
For tax years beginning after 2010, you cannot deduct any self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings. See chapter 6.
Oil and gas from marginal properties.(p2)
The temporary suspension of the 100% taxable income limit on percentage depletion on oil and natural gas produced from marginal properties applies to depletion in tax years beginning in 2010 or 2011. See chapter 9.
Future developments.(p2)
The IRS has created a page on for information about Publication 535, at Information about any future developments affecting Publication 535 (such as legislation enacted after we release it) will be posted on that page.

What's New for 2012(p2)

Standard mileage rate.(p2)
For 2012, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 55.5 cents per mile


The following reminders and other items may help you file your tax return.

IRS e-file (Electronic Filing)

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. For details on these fast filing methods, see your income tax package.
Form 1099 MISC.(p2)
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.
Photographs of missing children.(p2)
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.