14 Business Expenses for Tax Deduction You Might Be Missing
"Can I write this off?" is something every business owner thinks about every time they swipe their credit card.
While your CPA ultimately determines what you can legally deduct on your tax return, keeping accurate books throughout the year makes it much easier to identify legitimate business expenses when tax season arrives.
Many business owners unintentionally miss business expenses for tax deduction simply because they never tracked the expense in the first place. Keep reading to learn what those are!
Disclaimer: This article is for educational purposes only and is not tax advice. Always consult your CPA or tax professional regarding your specific tax situation.
What Is a Business Deduction?
A business deduction is a qualifying expense you can subtract from your business’s total revenue to calculate your taxable profit.
What it ISN’T: You write off a $500 charge, and you have to pay $500 less in taxes.
What it IS: You write off a $500 charge so your total annual revenue decreases by $500, lowering your taxable income.
The IRS requires these expenses to be “ordinary and necessary” for your business. That means they are common to your industry and appropriate for its operation.
So you probably can’t write off your family’s trip to Maui (sorry!)
Why So Many Business Owners Miss Tax Deductions
Introduce the idea that deductions are often missed because:
Receipts get lost
Personal and business spending are mixed together.
Expenses aren't categorized correctly.
Business owners wait until tax season to organize everything.
They simply don't realize certain expenses may qualify.
Transition into how consistent bookkeeping helps create a complete financial picture for their tax preparer.
14 Commonly Missed Business Expenses for Tax Deduction
You can write off more than you think! A lot of business owners don’t write things off out of fear of being called out by the IRS, or they just don’t know what is considered a write-off. As long as you’re doing it ethically and correctly, there’s no reason not to write off these business expenses.
Download my free tax deductions guide right here!
1. Home Office Expenses
Home office expenses only apply if the space is used regularly and exclusively for business.
This may include:
Rent or mortgage interest
Utilities
Internet
Homeowners insurance
Repairs related to the office
Your CPA will likely ask for the square footage of your home office and calculate how much each expense goes toward it.
2. Internet and Phone Bills
Many business owners assume they can't deduct these because they also use them personally. Similarly to your home office calculation, you can calculate how much of your phone bill goes toward business use and write it off.
3. Software and Online Subscriptions
Many monthly subscriptions become "invisible" because they're automatically charged. That’s why a bookkeeper can be so valuable. I’m not going to miss those charges on your monthly balance sheet report!
Examples:
Canva
Adobe Creative Cloud
Microsoft 365
Zoom
Dropbox
Flodesk
Domain renewals
Dozens of recurring subscriptions (monthly or annually) can add up over a year.
4. Business Mileage
Many business owners forget to track mileage until it's too late. If you drive any of these places for business purposes, you can write off the mileage:
Client meetings
Bank visits
Office supply runs
Networking events
Traveling between business locations
Keeping a mileage log throughout the year is much easier than trying to recreate it later. Keep your gas receipts, too!
5. Education and Professional Development
Any kind of professional development is considered a business expense for tax deduction.
Examples:
Conferences
Industry memberships
Workshops
Online courses
Certifications
Business books
Continuing education
Seminars
Investing in skills to better serve your clients can also provide tax benefits.
6. Office Supplies (Even Small Purchases)
Even small purchases count! If you purchase any of these for business purposes, you can write them off:
Printer paper
Ink
Pens
Shipping supplies
Labels
Notebooks
Filing systems
Whiteboards
Storage bins
I know it seems silly to keep receipts for all these little purchases, but think about how $10-$20 charges can add up over the course of a year.
7. Business Meals
Meals with a clear business purpose are often deductible. The deduction is typically 50% of the cost, and you MUST keep records of who you met with and the business topic discussed.
If you’re simply grabbing food on the way to a photoshoot or DoorDashing lunch in between client meetings, those are NOT deductible meals. This is something the IRS is picky about.
8. Marketing and Advertising Costs
These are the costs associated with promoting your business.
This can include:
Facebook ads
Google Ads
Instagram promotions
Business cards
Logo design
Brand photography
Website maintenance
Blog writing
SEO services
Email marketing
Promotional products
9. Bank Fees and Payment Processing Fees
All those little fees add up over the year, and they’re considered write-offs. Many business owners never think about these because they're automatically deducted.
Do you pay for any of these fees throughout the year?
Business checking account fees
Wire transfer fees
Credit card processing fees
PayPal fees
Stripe fees
Merchant service fees
Then you should be writing them off!
10. Business Insurance
Business insurance is considered an ordinary and necessary expense, making it tax-deductible.
Examples:
General liability insurance
Professional liability insurance
Errors & omissions
Cyber insurance
Commercial property insurance
Workers' compensation
11. Hiring Your Kids (When Done Properly)
Some business owners may be able to hire their children for legitimate work performed in the business.
Examples:
Organizing inventory
Cleaning the office
Filing paperwork
Social media assistance
Product packaging
Photography assistance
And even though they’re underage, they can still be added to your payroll as an employee, and you receive tax benefits.
Keep in mind:
Work must actually be performed.
Compensation must be reasonable.
Proper payroll and tax rules apply.
A bookkeeper or CPA can help you determine what’s appropriate here.
12. Professional Services
This is why I love outsourcing. Any kind of professional service for your business is a write-off. So not only are you supporting someone else’s business, but you’re getting professional help, AND that expense is a write-off. It’s a win for everyone!
Examples:
Bookkeeper
CPA
Attorney
Business consultant
Virtual assistant
Marketing agency
Graphic designer
IT support
13. Equipment and Technology Purchases
You probably use a computer or laptop to run your business. That’s definitely an ordinary and necessary expense!
Examples:
Laptop
Monitor
Keyboard
Printer
Camera
Ring lights
Microphones
Hard drives
Tablets
Tax treatment of these purchases can vary depending on the item and cost, so consult a tax advisor.
14. Business Travel Expenses
This is another tricky one for the IRS. Expenses incurred while traveling for business are generally deductible.
This includes:
Airfare
Hotels
Rental cars
Parking
Tolls
Taxi or rideshare services
Baggage fees
It’s important to document the business purpose of the trip and every single thing you’re charging while traveling. There are a lot of nuances in this space, so be sure to consult with a CPA or me if you need help.
Frequently Asked Questions About Business Expenses for Tax Deduction
Should I save receipts for every business purchase?
Generally, yes. Keeping receipts and supporting documentation makes it easier to substantiate expenses if questions come up later.
Is every business expense tax deductible?
Not necessarily. An expense must generally meet IRS requirements, so it's best to consult your tax professional before assuming something qualifies.
What if I forgot to track expenses earlier this year?
Start now. Even improving your recordkeeping for the remainder of the year can make tax season much smoother and help reduce missed opportunities.
Don't Leave Money on the Table This Tax Season
No one likes discovering they could have saved money after tax season is already over. While your CPA is the best person to advise you on tax deductions, maintaining organized, up-to-date books throughout the year gives them the information they need to identify legitimate opportunities.
The earlier you start tracking expenses consistently, the easier tax season becomes and the less likely you are to miss business expenses that could potentially reduce your tax bill. Clean books make filing easier, and they help you make informed financial decisions all year long.
Let’s work together to clean up your books before tax season.
