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Discover 20+ essential business tax deductions you might be missing—from home office write-offs to startup costs and professional services. Save more this tax season with these smart tips!
When it comes to running a business, every dollar counts. That’s especially true at tax time. Whether you’re a solopreneur, freelancer, small business owner, or managing a growing company, one of the smartest ways to lower your tax bill is by taking advantage of deductions. But here’s the catch—many business owners miss out on valuable write-offs simply because they don’t know what qualifies. Let’s fix that.
In this blog post, we’ll walk you through business tax deductions you might be missing—from everyday expenses to lesser-known strategies that can make a big difference come tax season.
If you work from home, even part-time, you may be eligible for the home office deduction—but many business owners overlook it due to confusion about the rules.
If you have a dedicated space, this is a deduction worth taking. Don’t overlook even a small workspace—it adds up over a full year.
Did you launch a new business this year? You can deduct up to $5,000 in qualified startup costs and $5,000 in organizational costs in your first year of operation.
💡 Anything beyond the $5,000 limits must be amortized over 15 years, but many skip these deductions altogether in the first year—don’t be one of them. It’s a great way to recoup some early investments.
📌 To qualify, keep a detailed logbook or mileage tracking app that records:
💡 Common business uses include visiting clients, driving to the post office, or attending networking events. These everyday errands can become valuable write-offs when properly tracked.
You can write off the percentage used for business. For example:
💡 Be honest and reasonable about your usage, and document it consistently. Even partial deductions help reduce your tax bill.
All of these are fully deductible as long as their services are related to your business.
💡 This also includes online platforms and tools you subscribe to for accounting, workflow management, or project collaboration. These costs support your business operations and are 100% deductible.
This includes:
💡 Even promotional giveaways or branded swag may qualify. Just ensure your expenses are tied directly to promoting your business.
You can deduct:
💡 This deduction helps you invest in your professional development while reducing your tax liability. Just make sure the course directly relates to your current business activities.
Always record:
💡 Entertainment expenses (concerts, sporting events) are not deductible under current tax law, so don’t assume that a night out with a client can be written off.
This includes:
💡 If your trip is primarily for business, you can deduct travel expenses even if you extend your stay for some personal time. Keep detailed itineraries and separate receipts for business-related expenses.
Also include:
💡 Labor is one of the most significant business expenses, and these deductions can be substantial.
Can be deducted over time through depreciation or—depending on the item and year—expensed immediately using Section 179 or bonus depreciation.
💡 These tax strategies allow businesses to manage large expenses and maximize deductions over multiple years.
Related: What's the Story with Depreciation?
This includes:
💡 If it protects your business, it likely qualifies. Even premiums for professional liability or malpractice coverage count.
This includes:
💡 If it’s used solely for business, the expense qualifies. Maintain lease agreements and receipts as backup documentation.
Fees from your business bank account, credit card interest, or payment processing platforms (like Stripe, PayPal, Square) are often overlooked.
These include:
💡 Interest on business credit cards or loans is deductible as long as the funds were used for legitimate business expenses.
If a client or customer fails to pay you and you’ve exhausted your efforts to collect, you might be able to claim it as a bad debt deduction—especially if you're using accrual accounting.
This can apply to product-based businesses and service providers who invoice clients. Document all communication and collection attempts.
Paper, pens, toner, mailing supplies, monitors, desks, chairs, external hard drives, webcams—these often qualify for immediate deduction or depreciation depending on their value.
Even software or apps for business use (like Canva Pro, Zoom, Slack) are deductible when used for business. Keep receipts and categorize them correctly in your accounting system.
Running a physical office space? You can deduct:
💡 These are basic necessities for operating a business and are fully deductible if you're responsible for them under your lease or ownership.
Self-employed? Set up a SEP IRA, Solo 401(k), or SIMPLE IRA and deduct contributions made on behalf of yourself (and employees).
You’ll lower your taxable income now while building long-term savings.
For 2025:
If you're self-employed, you can deduct 100% of health insurance premiums you pay for yourself, your spouse, and dependents.
This applies even if you don’t itemize deductions, as long as your business has a net profit and you aren’t eligible for another plan (like through a spouse).
Businesses structured as C corporations can deduct charitable contributions (up to 10% of taxable income). Other business types (like sole proprietorships or LLCs) may deduct charitable donations on their personal returns if they itemize, but they won’t be considered a business deduction.
It doesn’t matter how many deductions you qualify for—if you don’t have the receipts, documentation, or proof to back it up, the IRS might not allow them.
💡 Use tools like:
💡 Keep a separate business bank account and business credit card to make recordkeeping cleaner and easier to track.
Tax deductions aren’t just a nice perk—they’re essential for reducing your tax burden and keeping more money in your pocket. But they only work if you know which ones apply and have the records to prove them.
By reviewing this list, you’ve already taken the first step toward maximizing your business deductions. But don’t stop here. Consider working with a trusted tax advisor or accountant who can help you uncover even more savings specific to your business.
Because when it comes to taxes, what you don’t know really can cost you.
A business tax deduction is an expense that’s both ordinary and necessary for running your business. These can include office supplies, marketing costs, travel expenses, and more.
Yes, if you use a portion of your home exclusively and regularly for business, you may qualify for the home office deduction—even if you work remotely part-time.
Business meals are 50% deductible if they’re directly related to conducting business and not considered lavish. Always document who you met with and the purpose.
Absolutely. As long as you report income and your activity qualifies as a business, you can deduct related expenses—even if it’s part-time or on the side.
Keep receipts, invoices, mileage logs, bank statements, and notes documenting the business purpose of each expense. Digital tools like QuickBooks or MileIQ can help streamline this.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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