Small business tax deductions: a checklist to keep all year.
A deduction is an ordinary, necessary expense of running your business. The list below covers the ones that come up most for owner-run businesses — and what makes them count.
The common ones
- Home office. A space in your home used regularly and exclusively for the business.
- Vehicle and mileage. Business driving counts — if you keep a mileage log. The log is what makes it real.
- Supplies and materials. What you use up doing the work — from cleaning products to lumber to packaging.
- Phone and internet. The business portion of the bill, not the whole thing.
- Software and subscriptions. QuickBooks, scheduling apps, design tools — the systems that run the business.
- Business insurance. Liability and similar coverage for the work you do.
- Subcontractors you pay. Contract labor is deductible — and comes with 1099-NEC forms to file at year-end.
- Advertising and your website. From business cards to the site itself.
- Professional services. Bookkeeping, tax preparation, legal help.
- Education and licenses. Courses, certifications, and license renewals for your trade.
- Bank and processing fees. Account fees and the cut card processors take.
What makes a deduction hold up
Two things: the expense is genuinely for the business, and you can show it. Receipts, statements, and a mileage log are the proof. Only the business-use portion counts when something is mixed, like a phone or a vehicle. And when your income and expenses live in clean books all year, deductions stop being an April scramble — they're already sitting there, organized, when it's time to file.
Whether a specific expense is deductible depends on your situation — bring it up and we'll look at it together.
Official source
Review the IRS guidance on deducting business expenses. Eligibility depends on the facts, records, and business use for each expense.
General information, not personalized tax or legal advice. Every situation is different — talk to us about yours.