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Hello! I would be happy to help you understand how business deductions work. Generally speaking, the claim is true, as the IRS allows you to deduct the costs of running your trade or business. To qualify, a purchase must be ordinary and necessary for your specific industry 4. For instance, if you use a car only for business purposes, you are permitted to deduct its entire cost of ownership and operation 1. This principle even extends to large-scale purchases; for example, tax codes currently allow for the write-off of the entire cost of a private jet 67. It is important to keep a few details in mind, though! A tax write-off doesn't mean you get the full cash price back; rather, it reduces your taxable income, which then gets taxed at your marginal rate 9. For larger items known as capital purchases, the deduction is often spread out over several years through a process called depreciation 11. While you can deduct a wide variety of things like supplies, travel, and research expenses 1215, you generally cannot deduct the cost of sale when you are actually buying a business 2.