Three Ways to Legally Write Off Any Business Expense

I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so that you don't have to pay for it.

1. Business Purpose

The expense needs to have a business purpose, such as a meal with a business partner, a trip to meet with clients, or purchasing new equipment for your startup. As long as your primary purpose is spending the money on your business, you're in the clear.

2. Ordinary Expense

The expense must be considered ordinary, which means it must be reasonable compared to what others in your industry are doing and spending on a regular basis. This is why some high-ticket real estate agents can write off G-wagons, as it is customary to present wealth to those with wealth. If it's customary and usual, you can write it off.

3. Necessary Expenses

The expense must be necessary. In other words, the purpose of your spending money must be to make more money. This is not a limitation; it’s an invitation from the IRS to invest every penny you have into growing your business and making as much money as possible for you and your clients.

So sit down right now and brainstorm a list of all the ways that you could invest in yourself, your clients, and your business. Guess what? That list can be funded with 100% tax-free money.

If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.

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