Small Business Tax Deductions

Maximize your tax savings with these commonly overlooked small business deductions. Every dollar you save in taxes is a dollar that can be reinvested in your business.

Smart tax planning saves money

1. Home Office Deduction

If you use part of your home regularly and exclusively for business, you may deduct:

• Percentage of rent/mortgage interest
• Utilities and internet
• Homeowners insurance
• Repairs and maintenance

2. Vehicle Expenses

You can deduct business-related vehicle expenses using either:

• Standard mileage rate: 65.5 cents per mile (2024)
• Actual expenses: Gas, oil, repairs, insurance, depreciation
• Keep detailed logs of business vs. personal miles

3. Business Insurance

Premiums for business insurance are fully deductible:

• General liability insurance
• Professional liability (errors and omissions)
• Business interruption insurance
• Workers' compensation
• Business-owned vehicle insurance

4. Equipment and Supplies

Section 179 allows you to deduct the full cost of qualifying equipment:

• Computers and office equipment
• Machinery and tools
• Furniture and fixtures
• Software and technology
• Office supplies (up to $2,500 per item)

5. Professional Services

• Legal fees
• Accounting and bookkeeping
• Consulting services
• Marketing and advertising agencies

6. Employee Benefits

• Health insurance premiums
• Retirement plan contributions
• Education and training
• Employee bonuses and compensation

7. Travel and Meals

• Business travel (flights, hotels, rental cars)
• 50% of business meals
• Client entertainment (subject to rules)