skip navigation
skip all navigationskip to business related indexskip to resource indexskip to main navigation 
What's New
Updates
Rate this Product
Business Related Index
Pre Start-Up
Starting Your Business
Federal Employer Identification Number/Form SS-4
Recordkeeping
Accounting Periods & Methods
Selecting a Business Structure
What are Business Assets
What is Business Income
What are Business Expenses
Specialized Guidance
Hiring
Preparing Tax Returns
e-file
Filing Returns/
  Paying Taxes
Changing/Closing
  Your Business
Post-Filing Issues
Other Tax Issues
Resource Index
IRS Business Forms/
  Publications
Teens in Biz
FAQ
State and Local
  Government
Helpful Links
Small Business Products
BackHomeNextseparator Help IRS Tax Map
Research Tool		 Site Map Search Accessibility Features
Index > Starting Your Business > What are Business Expenses

Starting Your Business/recordkeeping

What are Business Expenses

Commissions

If you pay a bonus, percentage, or other type of commission to direct sellers working under you, you can deduct the amount you pay. Report the full amount of any commissions you receive as business income, and deduct the commissions you pay out as ordinary and necessary business expenses.


Important References:

Schedule C (Form 1040) Profit or Loss from Business