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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 send your comments to:

Internal Revenue Service
Tax Forms and Publications
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 send us comments from Click on "More Information" and then on "Give us feedback."
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax publications.
Ordering forms and publications.(p2)
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

We cannot answer tax questions sent to either the "Comments and suggestions" or "Ordering forms and publications" address.
Tax questions.(p2)
If you have a tax-related question, please go to Help With Tax Questions on If you've looked around our site and still didn't find the answer to your general tax question, please call our toll-free tax assistance line at 1-800-829-1040 for individual tax questions or 1-800-829-4933 for business tax questions.

Future Developments(p2)

For the latest information about developments related to Publication 535, such as legislation enacted after it was published, go to

What's New for 2013(p2)

The following items highlight some changes in the tax law for 2013.
Optional safe harbor method to determine the business use of a home deduction.(p2)
Beginning in 2013, you can use the optional safe harbor method to determine the deduction for the business use of your home. For more information, see chapter 1.
Standard mileage rate.(p2)
Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56.5 cents per mile. For more information, see chapter 11.
Additional Medicare Tax.(p2)
Beginning in 2013, a 0.9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than:
  • $125,000 if married filing separately,
  • $250,000 if married filing jointly, or
  • $200,000 if single, head of household, or qualifying widow(er) with dependent child.
Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. RRTA compensation should be separately compared to the threshold. For more information, see chapter 5 or visit and enter the following words in the search box: Additional Medicare Tax.
Retiree drug subsidy.(p2)
Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). For more information, visit and enter the following words in the search box: Retiree drug subsidy.

What's New for 2014(p2)

The following item highlights a change in the tax law for 2014.
Standard mileage rate.(p2)
Beginning in 2014, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56 cents per mile.
Film and television productions costs.(p2)
The election to expense film and television production costs does not apply to productions that begin in 2014. For more information, see chapter 7.


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 & 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) (24-hours a day, 7 days a week) if you recognize a child.