Cash withdrawals themselves are not deductible because they merely represent transfers of funds rather than actual business expenditures. The deduction applies only to expenses incurred in the ordinary course of business, such as payments for supplies, services, or other costs that are directly related to generating income. It is the nature and purpose of the expenditure—not the method of withdrawal—that determines deductibility. Always keep accurate records and supporting documentation for each expense. Consultation with a qualified tax professional is recommended to ensure that your business deductions comply with IRS standards.