(December 10, 2014 at 12:41 pm)Nope Wrote: I am not an accountant so maybe I am wrong on this. Don't business get to deduct the cost of running their business from the amount that they earn when they pay taxes?(Hopefully, that made sense)
Some, but not all, expenses are deductible. Payroll, insurance benefits for employees, rent or lease payments on your business space, those things are deductible. Expenses such as storage are not. Some of the COGS is exempt, some must be capitalized, and some is taxed regularly.
Long answer short, not all expenses are write-offs, but some are.
