Can I deduct personal income tax?

Personal income-tax payments are not treated as ordinary business expenses.

Personal income-tax payments are not treated as ordinary business expenses. Keep tax payments separate from the cost of earning business income.

Records to keep

• The original bill or document, with date and amount.
• A note of the business purpose and any allocation calculation.

A common mistake

A category label alone does not establish eligibility. Review the facts before claiming.