DEDUCTIONS

A.Ordinary & Necessary Business Expenses

To produce taxable income earned

B.Accrued Expense Rule:Deductible in the year incurred if it meets

criteria.

1.Obligated by BOD(board of director)

2.Services have been rendered

3.If you paid tax till 3/15

C.Bad Debt:Deductible only by accrual basis taxpayer

using direct write-off method

D.Taxes

1.State and local income taxes

2.Real estate taxes

3.Employer's share of payroll taxes

4.You can not deduct federal income tax