Why do some people receive tax breaks on business expenses?

Question

Why do some people receive tax breaks on business expenses?

Answer 1

Are you asking why some people can take business expense and some people can't? This will depend on if you have a business or just have expenses from working. If you have your own business you usually file a schedule C to deduct your business expense. If you just have expenses from your job, you can only deduct those if you are itemizing your deductions on schedule A  (not taking the standard deduction) See pub. 529 on irs.gov for the specific expenses that can and can not be deducted as job expense.  

Answer 2

Read about self employed (or independent contractor) tax filing: http://taxipay.blogspot.com/2008/04/tax-...

Answer 3

Money you pay in order to make money in a  business is deducted (subtracted) from the business income before the tax is calculated.

Answer 4

You mean why do business deductions exist?

In simplest terms:  So that the person who pulls in $x*x,x*x...but has a huge overhead, including store rental, pays employees, buys inventory...is not paying the same taxes as the person who brings in $x*x,x*x in consultant fees, and has NO expenses.

The consultant clearly had more profit than the store owner, even though the same amount of money went through their hands.