Some Small Business Deductions
Understanding what expenses are tax-deductible can help reduce your taxable income and improve year-end planning. While every business is different, here are some common deductions small business owners may be eligible for:
1. Business Meals
50% of meals with clients, vendors, or employees related to business activities may be deductible. Keep detailed records of who you met with and the business purpose.
2. Office Supplies and Equipment
Pens, paper, software, computers, and other tools used in your day-to-day operations can usually be deducted.
3. Rent or Home Office Expenses
If you rent a commercial space or qualify for a home office deduction, you may be able to deduct a portion of rent, utilities, and internet expenses.
4. Mileage and Vehicle Expenses
If you use your personal vehicle for business, you can deduct either the standard mileage rate or actual vehicle expenses—whichever provides the better deduction. A mileage log is essential.
5. Professional Services
Fees paid to accountants, bookkeepers, lawyers, consultants, and other professional services used for your business are deductible.
6. Marketing and Advertising
Expenses related to promoting your business—such as website hosting, ads, graphic design, business cards, and social media marketing—are deductible.
7. Insurance
Business insurance premiums, including liability and property insurance, are generally deductible.
8. Continuing Education and Training
Workshops, seminars, industry courses, or even books that help you maintain or improve skills related to your business can be deductible.
9. Software Subscriptions
Tools like QuickBooks Online, Canva, or project management apps used for your business may qualify.
10. Employee Wages and Contractor Payments
Wages paid to employees and payments to independent contractors (if properly documented) are deductible business expenses.
Disclaimer: This content is for informational purposes only and does not constitute tax or legal advice. Always consult your CPA or a qualified tax professional to confirm which deductions apply to your specific business and situation.