As a small business owner, you can deduct a wide range of expenses that are considered both ordinary and necessary for operating your business.
These include office rent, utilities, supplies, marketing costs, travel expenses, and employee wages. You may also deduct depreciation on business equipment and mileage if you use a personal vehicle for business purposes.
Some deductions, such as meals and entertainment, are subject to limitations. For example, business meals are typically 50% deductible, while entertainment expenses are no longer deductible under most circumstances. Keeping accurate records and saving receipts is essential for substantiating your deductions during an IRS audit.
Understanding what qualifies as a deductible business expense can help reduce your taxable income and increase your bottom line. Work with a tax professional to ensure you’re maximizing your deductions while staying compliant with current tax laws.
