What exactly are tax write offs either for personal or business uses?

Question

What exactly are tax write offs either for personal or business uses?

In: 7

Answer 1

My business Makes $10,000 in revenue and incurs $8,000 in expenses over the course of the year

I am taxed based on the $2,000 profit. However, let’s say I took a vacation to Hawaii for a “business conference” That cost me $1,000. I could say that the travel was for the conference and as such is a business expense. Therefore I can add that $1,000 to my annual expenses and now I am only making a “profit” of $1,000 and am taxed accordingly.