For example, costs incurred as part of carrying of the business may be deducted against income earned by that business. These deductions many include wages paid to employees, interest on borrowed funds, travelling expenses, depreciation, repairs to rental properties etc.
What are allowable deductions from gross income?
Allowable deductions from gross income relates to business expenses – those expenses which are ordinary and necessary for the conduct of trade or business or profession. Expenses which are personal to the business owners or entrepreneurs and does not contribute to earning the income are not allowed deductions.