10 Tax Deductions Every Small Business Owner Should Know

Introduction

As a small business owner, maximizing your tax deductions is one of the most effective ways to reduce your tax burden and keep more money in your pocket. Yet many entrepreneurs leave money on the table simply because they're unaware of the deductions available to them.

1. Home Office Deduction

If you use part of your home exclusively and regularly for business, you may be able to deduct a portion of your housing expenses. This includes:

The IRS offers two methods: the simplified method ($5 per square foot, up to 300 sq ft) or the regular method based on actual expenses.

2. Vehicle Expenses

If you use your vehicle for business purposes, you can deduct those expenses. Keep detailed records of your business miles driven. For 2025, the standard mileage rate is 67 cents per mile.

3. Business Insurance Premiums

Premiums paid for business insurance are fully deductible, including:

4. Professional Services

Fees paid to attorneys, accountants, consultants, and other professionals for business-related services are deductible.

5. Office Supplies and Equipment

Everything from paper clips to computers can be deducted. Items over $2,500 may need to be depreciated over time, though Section 179 allows immediate expensing of qualifying equipment.

6. Business Travel

When traveling for business purposes, you can deduct:

7. Marketing and Advertising

All costs associated with promoting your business are deductible, including website hosting, social media advertising, print materials, and promotional items.

8. Education and Training

Courses, seminars, and training that maintain or improve skills needed in your business are deductible.

9. Bank Fees and Interest

Business bank account fees, credit card processing fees, and interest on business loans are all deductible expenses.

10. Retirement Plan Contributions

Contributions to qualified retirement plans like SEP-IRAs or Solo 401(k)s reduce your taxable income while building your retirement savings.

Conclusion

Taking advantage of these deductions requires good record-keeping throughout the year. Consider working with a professional accountant who can help identify all applicable deductions for your specific situation. The savings can be substantial—often thousands of dollars annually.

Ready to maximize your deductions? Contact Tuesday AIA for a comprehensive tax review and personalized strategy.