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taxmap/pubs/p535-000.htm#en_us_publink1000208588
Publication 535

 
Business Expenses

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taxmap/pubs/p535-000.htm#en_us_publink1000272107Introduction

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.
Note. Section references within this publication are to the Internal Revenue Code and regulation references are to the Income Tax Regulations under the Code.
taxmap/pubs/p535-000.htm#en_us_publink100021620

Comments and suggestions.(p1)

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We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from IRS.gov/FormComments. Or you can write to:


Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224


Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications.
taxmap/pubs/p535-000.htm#en_us_publink100021621
Ordering forms and publications.(p1)
Visit IRS.gov/FormsPubs to download forms and publications. Otherwise, you can go to IRS.gov/OrderForms to order current and prior-year forms and instructions. Your order should arrive within 10 business days.
taxmap/pubs/p535-000.htm#en_us_publink100021622
Tax questions.(p2)
If you have a tax question not answered by this publication, check IRS.gov and How To Get Tax Help at the end of this publication.

Future Developments(p2)

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For the latest information about developments related to Pub. 535, such as legislation enacted after it was published, go to
IRS.gov/Pub535.

What's New for 2017(p2)

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The following items highlight some changes in the tax law for 2017.
taxmap/pubs/p535-000.htm#en_us_publink10004849
Determining deductible or capitalized costs.(p2)
Final regulations for tax years beginning on or after January 1, 2014, provide guidelines for determining whether certain costs are deductible or capitalized, and requirements for new de minimis safe harbors. See the updated discussion in chapter 1.
taxmap/pubs/p535-000.htm#en_us_publink100078064
Employment credits.(p2)
The empowerment zone employment credit and the Indian employment credit have been extended through December 31, 2017. For more information, see chapter 2.
taxmap/pubs/p535-000.htm#en_us_publink10004864
Film and television and live theatrical production costs.(p2)
Certain qualified film, television, or live theatrical productions may be eligible for the special depreciation allowance under section 168(k). For more information, see chapter 7.
taxmap/pubs/p535-000.htm#en_us_publink1000208593
Standard mileage rate.(p2)
Beginning in 2017, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 53.5 cents per mile. For more information, see chapter 11.
taxmap/pubs/p535-000.htm#en_us_publink100083929
Lobbying expenses.(p2)
Section 13308 of Public Law 115-97 repeals the deduction for local lobbying expenses incurred or paid on or after December 22, 2017. For more information, see chapter 11.
taxmap/pubs/p535-000.htm#en_us_publink100084903
Penalties and fines.(p2)
Section 13306 of Public Law 115-97 amended section 162(f) with regard to penalties and fines paid to a government or specified nongovernmental entities. For more information, see chapter 11.

What's New for 2018(p2)

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The following item highlights a change in the tax law for 2018.
taxmap/pubs/p535-000.htm#en_us_publink1000208600
Standard mileage rate.(p2)
Beginning in 2018, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 54.5 cents per mile.

Reminders(p2)

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

IRS e-file (Electronic Filing)

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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.
taxmap/pubs/p535-000.htm#en_us_publink1000244564
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.
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Photographs of missing children.(p2)
The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). 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 800-THE-LOST (800-843-5678) (24 hours a day, 7 days a week) if you recognize a child.
taxmap/pubs/p535-000.htm#en_us_publink100078065
Preventing slavery and human trafficking.(p2)
Human trafficking is a form of modern-day slavery, and involves the use of force, fraud, or coercion to exploit human beings for some type of labor or commercial sex purpose. The United States is a source, transit, and destination country for men, women, and children, both U.S. citizens and foreign nationals, who are subjected to the injustices of slavery and human trafficking, including forced labor, debt bondage, involuntary servitude, "mail-order" marriages, and sex trafficking. Trafficking in persons can occur in both lawful and illicit industries or markets, including in hotel services, hospitality, agriculture, manufacturing, janitorial services, construction, health and elder care, domestic service, brothels, massage parlors, and street prostitution, among others.
The President’s Interagency Task Force to Monitor and Combat Trafficking in Persons (PITF) brings together federal departments and agencies to ensure a whole-of-government approach that addresses all aspects of human trafficking. Online resources for recognizing and reporting trafficking activities, and assisting victims include the Department of Homeland Security (DHS) Blue Campaign at DHS.gov/blue-campaign, the Department of State Office to Monitor and Combat Trafficking in Persons at State.gov/j/tip, and the National Human Trafficking Resource Center (NHTRC) at humantraffickinghotline.org. DHS is responsible for investigating human trafficking, arresting traffickers, and protecting victims. DHS also provides immigration relief to non-U.S. citizen victims of human trafficking. DHS uses a victim-centered approach to combating human trafficking, which places equal value on identifying and stabilizing victims and on investigating and prosecuting traffickers. Victims are crucial to investigations and prosecutions; each case and every conviction changes lives. DHS understands how difficult it can be for victims to come forward and work with law enforcement due to their trauma. DHS is committed to helping victims feel stable, safe, and secure.
To report suspected human trafficking, call the DHS domestic 24-hour toll-free number at 866-DHS-2-ICE (866-347-2423) or 802-872-6199 (non-toll-free international). For help from the NHTRC, call the National Human Trafficking Hotline toll free at 888-373-7888 or text HELP or INFO to BeFree (233733).
The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a public advisory to financial institutions that contains red flag indicators for potential suspicious financial activity associated with human trafficking. If warranted, financial institutions should file a Suspicious Activity Report (FinCEN 112) with FinCEN to report these activities. For more information, go to Fincen.gov/Sites/default/files/advisory/FIN-2014-A008.pdf