Ask a Business Expert

A: Most expenses for or related to your business are deductible, although limits or special requirements may apply. Examples of some write–offs you may have overlooked:

• Sponsorship of a little league team may be deductible as an advertising expense.
• Uncollected accounts receivable for goods you've sold qualify for a bad debt deduction.
• Penalties you've paid for late or nonperformance under a contract.

Keep track of all your disbursements for the year to check for deductibility. For more information see IRS Publication 334, Tax Guide for Small Business, at www.irs.gov.