Contents
Important Changes for 1999 .............
1
Important Changes for 2000 .............
2
1. Deducting Business Expenses ..
2
2. Employees' Pay ...........................
5
3. Meals and Lodging Furnished to
Employees ...................................
8
4. Fringe Benefits ............................
9
5. Employee Benefit Programs ......
17
6. Retirement Plans .........................
20
7. Rent Expense ..............................
24
8. Interest .........................................
26
9. Taxes ............................................
32
10. Insurance .....................................
33
11. Costs You Can Deduct or
Capitalize ......................................
36
12. Amortization ................................
40
13. Depletion ......................................
47
14. Business Bad Debts ...................
51
15. Electric and Clean-Fuel Vehicles
53
16. Other Expenses ...........................
57
17. How To Get More Information ...
63
Index ....................................................
65
Introduction
This publication discusses common business
expenses and explains what is and is not
deductible. The general rules for deducting
business expenses are discussed in the
opening chapter. The chapters that follow
cover specific expenses and list other publi-
cations and forms you may need.
Important Changes
for 1999
The following items highlight some changes
in the tax law for 1999.
Standard mileage rate. The standard mile-
age rate for the cost of operating your car,
van, pickup, or panel truck in 1999 is 321/2
cents a mile for all business miles driven be-
fore April 1. The rate is 31 cents a mile for
business miles driven after March 31. See
chapter 16.
Health insurance deduction for the self-
employed.
For 1999, this deduction in-
creases to 60% of the amount you paid for
health insurance for yourself and your family.
After 2001, the deduction will increase again.
See chapter 10.
Business use of your home. You may be
able to deduct expenses for your home office
even if it is not where you perform your most
Department
of the
Treasury
Internal
Revenue
Service
Publication 535
Cat. No. 15065Z
Business
Expenses
For use in preparing
1999 Returns
