Keep More Money in Your Business & Maximize Profits.
Business deductions are expenses that are necessary and ordinary for running your business, and they help reduce your taxable income, meaning you pay less in taxes. Common deductions include office rent, equipment, software, marketing costs, business travel, and even a home office if you work from home.
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The types of expenses listed below are generally 50% deductible, if they are reasonable (not extravagant) and directly related to conducting current or future business:
Meals while traveling for business (alone or with business associates)
Meal when you attend conventions, trade shows, business conferences
Hosting a group business dinner at your home
Hosting a group business dinner at a private club or restaurant.
Meals for potential customers or clients (at home or out)
Business meals at a club:
Meals during hunting, fishing, rafting, skiing or similar outings with business colleagues
The cost of meals for a business associate's spouse (and your own, if other spouses are attending)
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Meal expenses for a company picnic or holiday party
Food made available to the public for free
Reimbursed expenses to employees and contractors that are included on the W-2 or Form 1099 as taxable compensation
Meal expenses that are sold to a client or customer, like providing meals as part of a daycare service
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Air, train, or bus fare for business travel
Hotel and motel expenses for business travel
Rental car expenses
Taxi, shuttle fares, and transportation tips while out of town on business
Gas, oil, parking fees, and tolls while out of town (for rental vehicles)
Internet access fees when away on business
Tips while traveling (except for meal tips, which are usually only 50% deductible), but for 2023 you may deduct 50% of the cost of business meals and beverages purchased from restaurants)
Dry cleaning if you have to stay overnight for business
Cost of shipping baggage, supplies, products, or equipment necessary for business
Cost of storing baggage and equipment during a business trip
Late check-out charges if you are required to stay overtime for business
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Home offices can range from multiple rooms to a single room to even a desk in the corner of a room.
It's a space in your home that's used:
For work only and nothing else
For work that happens regularly
As the primary place where work gets done
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Web advertising, banner ads, pay-per-click fees
Promotional purchases and giveaways (T-shirts, caps, bags, pens)
Fees paid to ad and public relations agencies
Business logo design
Marketing e-mail, direct mail campaigns
SEO and web traffic analysis
Promotions and promotional events
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These expenses have to be deducted in the year you incurred them. If the services you receive span several years, you’ll have to deduct those expenses in each of the years you receive them.
Short-term consulting fees
One-time management consultation fees
One-time marketing consultation fees
One-time engineering consultation fees
One-time technical consultation fees
Fees paid for website analysis
Other outside consulting fees for short-term advice on specific deals
One-time logo and web design fees
Fees paid to talent agents and business and personal managers who aren't paid as employees
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If you have a car designated entirely for business use, you can deduct its full operating cost. If your personal vehicle is used in part for business purposes, however, you’ll need to divide your expenses to deduct only the business usage costs.
There are two options for calculating the business use of your vehicle:
Standard mileage rate
Actual expense method (eligible expenses include depreciation, lease payments, registration fees, licenses, gas, insurance, repairs, oil, and tires)
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Office expenses are what you paid to keep your office running smoothly.
Other office expenses
Shredding services
Security system
Shipping & postage
Office cleaning
Office supplies
Download a deductions tracking spreadsheet here