What Can You Write Off in Your Small Business?

When it comes to taxes, knowing what you can write off is key to keeping more of your hard-earned income. Business write-offs, also known as tax deductions, are expenses that are considered ordinary and necessary for running your business. Claiming them reduces your taxable income, which means a lower tax bill. These deductions not only ease your financial burden at tax time but also reflect the actual cost of doing business throughout the year.

Office and operational costs are among the most common deductions. Everyday items such as pens, paper, printer ink, software subscriptions, and utilities all qualify. If you rent office space, that expense can also be deducted. Even part of your home expenses may apply if you have a dedicated home office. When you use part of your home exclusively for business, you may deduct a portion of your mortgage interest, utilities, insurance, and repairs.

Marketing and advertising expenses are another area where small businesses can save. Website design, business cards, online ads, and promotional materials all qualify. If it helps you attract or retain customers, it’s likely deductible under current tax guidelines.
Professional services are also eligible for deduction. Legal fees, accounting services, consultants, and even the cost of tax preparation can be written off. These services are considered essential to the daily operation and compliance of most small businesses.

Travel and vehicle use are also standard deductions. Business-related travel, including airfare, lodging, and meals, is deductible; however, meals are generally limited to 50 percent deductibility. If you use your vehicle for business, you can choose between deducting mileage or actual expenses, depending on which method provides the greater benefit.

Employee and contractor costs also count. Wages, benefits, and payments to freelancers or independent contractors qualify as deductible business expenses. Employers can also deduct payroll taxes and contributions made to employee retirement plans.

Equipment purchases and depreciation play a significant role for businesses that invest in tools or machinery. Laptops, office furniture, and larger equipment may be deducted upfront under Section 179 or depreciated over several years. This helps spread out the cost of major purchases while still reducing taxable income.

Financial fees are often overlooked but can add up over time. Bank fees, loan interest, and merchant processing charges from platforms like Stripe or PayPal are generally deductible. These expenses are part of maintaining financial operations and should be tracked carefully.

Keeping detailed records and separating personal from business expenses is crucial for accurate reporting. Save receipts, track mileage, and categorize spending clearly to avoid mistakes. When in doubt, consult a tax professional to ensure you’re maximizing your deductions legally and confidently. Proper organization and awareness of allowable write-offs can make a significant difference in your bottom line at tax time.