Non deductible expenses

1. Cost of goods sold. Calculated at the beginning and the end of every tax year. Deduct the cost of goods sold from your gross receipts to get total income. Cost of raw materials free storage labor factory overhead.

2. Capital expenses. Investments you make in business. These are assets in your business like Capital. (Example) startup cost, business assets, and improvements.

3. Personal expenses. Expenses for personal and recreational are personal and is not deductible.