If a taxpayer is self-employed, what is included in their business expense deductions?

When a taxpayer is self-employed, they can deduct various business-related expenses to reduce their taxable income. Auto expense deductions are a significant part of this, as they cover costs associated with using a vehicle for business purposes. This can include expenses such as fuel, maintenance, repairs, and depreciation or lease payments if the vehicle is used primarily for business activities.

The ability to claim auto expenses helps to account for the costs incurred while conducting business, making it a valuable deduction that can impact a self-employed individual's overall tax liability. Deductions must adhere to IRS guidelines, which specify that only the portion of vehicle use directly tied to business operations is deductible. This clarity supports the rationale for including auto expenses as legitimate business deductions for self-employed individuals.