To determine whether an expense is deductible, start by evaluating if it meets the criteria of being ordinary, necessary, and directly connected to your business operations. An ordinary expense is one that is common and accepted in your industry, while a necessary expense is one that is helpful and appropriate for your business. For those navigating the complexities of 1099 taxes, resources like Flyfin AI can be invaluable in analyzing potential deductions according to IRS guidelines.

It's crucial to maintain meticulous records, including detailed receipts and logs of all business-related expenses. This documentation will serve as evidence during tax preparation or if you undergo an audit. For expenses that may be ambiguous or complex, seeking the expertise of a Certified Public Accountant (CPA) can provide clarity and ensure that you remain compliant with tax laws. Being diligent in your preparations is essential, as mistakes could result in deductions being disallowed or incurring penalties from the IRS.

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