Tax Deductions. Taxes and Licenses

While federal income tax is never deductible from your gross income, local taxes such as franchise tax payments, state income tax, property tax, sales and use tax can be written off on a business tax return. Government fees such as secretary of the state dues, tangible or intangible property registration fees, business license fees are also tax deductible. Expenses related to a formation of an entity, such as articles of incorporation fees are deductible even if they were not paid from a business banking account.