Here are the top 10 tax deductions every small business owner should know about:
If you use a portion of your home regularly and exclusively for business, you may qualify for the home office deduction. This can include a percentage of rent/mortgage, utilities, and internet costs.
Pro tip: You can use the simplified method ($5 per square foot, up to 300 sq. ft.) or actual expenses based on the percentage of business use.
If you use your vehicle for business, you can deduct mileage or actual auto expenses (gas, maintenance, depreciation, insurance).
Keep a mileage log or use a tracking app to support your deduction.
Just launched your business? You can deduct up to $5,000 in startup expenses (legal fees, consulting, marketing, etc.) and amortize the rest over time.
Items like pens, paper, computers, printers, and office furniture are deductible. More expensive equipment may qualify for Section 179 depreciation or bonus depreciation.
You can deduct 50% of qualifying business meals with clients, partners, or employees, as long as the meal is directly related to your business.
Keep receipts and note who you met with and the purpose of the meal.
Fees paid to CPAs, attorneys, consultants, and other professionals are fully deductible as business expenses.
These services must be directly related to your business operations.
Salaries, wages, bonuses, and benefits paid to employees are deductible. So are payments to independent contractors (reported on Form 1099-NEC).
Be careful to properly classify workers as employees or contractors.
Promoting your business? Costs for ads, social media, website development, graphic design, business cards, etc., are fully deductible.
Marketing is not only a growth strategy, it’s a tax deduction.
Courses, workshops, certifications, and industry events that enhance your skills or knowledge for the business are deductible.
Travel related to continuing education may also be deductible.
Leasing office space, equipment, or machinery for business use? These payments are generally deductible.
Includes coworking spaces or virtual office leases if used for business purposes.
Missing just one deduction could cost you hundreds or even thousands of dollars. At Sadoch & Company, we help small business owners identify every eligible expense and build a proactive tax strategy that supports growth.
