Stop Overpaying: Claim Every Deduction You Deserve

Many small business owners unknowingly overpay their taxes each year because they fail to take advantage of all the deductions available to them. Whether you’re a freelancer, entrepreneur, or running a growing company, understanding which expenses you can deduct can help you retain more of your hard-earned revenue.

As tax season approaches, now is the time to ensure you’re maximizing every possible deduction. This guide breaks down the most valuable tax deductions available to small businesses—some of which you might be overlooking.

Claim Your Home Office Deduction

If you operate your business from home, you could be eligible for the home office deduction—one of the most misunderstood and underutilized deductions.

What Qualifies for a Home Office Deduction?

To qualify, your home office must meet two requirements:

• Exclusive Use: The space must be used solely for business purposes (a guest bedroom you occasionally work in doesn’t count).

• Principal Place of Business: This must be where you conduct most of your business activities, such as client calls, bookkeeping, and administrative tasks.

How to Calculate Your Deduction

You have two options:

• Simplified Method: Deduct $5 per square foot of your home office space, up to 300 square feet.

• Actual Expense Method: Deduct a percentage of home expenses (mortgage, rent, utilities, internet, insurance) based on the percentage of your home used for business.

💡 Pro Tip: Many business owners fear taking this deduction due to audit concerns, but as long as you meet the IRS requirements and maintain accurate records, it’s a legitimate way to reduce your taxable income.

Business Vehicle Deductions: Mileage vs. Actual Expenses

If you use a car for business purposes, you can deduct either mileage or actual expenses.

Mileage Deduction

For 2024, the IRS standard mileage rate is 67 cents per mile. If you track all your business-related trips, this method is often simpler and yields significant savings.

Example: If you drive 10,000 miles for business, you can deduct $6,700 from your taxable income.

Actual Expense Deduction

This includes:

• 🚗 Fuel and maintenance

• 🚗 Insurance and registration fees

• 🚗 Lease payments or depreciation

• 🚗 Repairs and tolls

If your vehicle is used only for business, you can deduct 100% of these costs. If you use it for both personal and business purposes, you’ll need to calculate the percentage of business use.

💡 Pro Tip: Keep a detailed log of miles driven and expenses so you can compare both methods and choose the most beneficial one.

Office Supplies, Equipment & Software: Don’t Miss These Write-Offs

Even small purchases add up, so be sure to track all office-related expenses throughout the year.

What’s Deductible?

• 🖥️ Computers, printers, and office furniture

• 📎 Pens, paper, and office supplies

• 💻 Business-related software and cloud services (e.g., QuickBooks, Adobe, Microsoft 365)

Bonus Depreciation & Section 179

If you purchase new or used business equipment, you may qualify for 100% bonus depreciation or a Section 179 deduction, allowing you to deduct the entire cost of eligible assets in the same year, rather than spreading it over time.

Example: If you buy a $3,000 laptop for your business, you may be able to deduct the full amount in the first year instead of depreciating it over multiple years.

💡 Pro Tip: Before the year ends, consider upgrading outdated equipment to take full advantage of these deductions.

Employee Salaries & Benefits: A Major Tax-Saving Tool

If you have employees, wages and benefits are deductible, reducing your taxable income.

What’s Deductible?

• Salaries and wages

• Employer-paid payroll taxes (Social Security, Medicare)

• Health insurance premiums

• Retirement plan contributions (401(k), SEP IRA)

• Bonuses, commissions, and incentives

💡 Pro Tip: If you own an S-Corp, your own salary is deductible, as long as it’s considered “reasonable compensation.”

Marketing & Advertising: Invest in Growth and Get a Tax Break

Promoting your business is essential, and the good news is that marketing and advertising expenses are fully deductible.

What’s Deductible?

• Social media ads (Facebook, Google, LinkedIn)

• Website design, hosting, and maintenance

• Business cards, brochures, and printed materials

• Sponsorships, networking events, and conferences

• Professional branding, including logos and graphic design

💡 Pro Tip: Track marketing expenses carefully—every dollar spent to grow your business can also lower your tax bill.

Other Overlooked Small Business Deductions

Here are a few more often-missed deductions that can add up to big savings:

• Business Meals: You can deduct 50% of meals with clients, partners, or employees if they are business-related. Keep receipts and document the purpose of the meeting.

• Travel Expenses: Airfare, hotels, rental cars, and even business-related Uber rides are deductible. Keep detailed records of all business travel.

• Professional Services: Fees paid to accountants, lawyers, consultants, and business coaches are fully deductible.

• Education & Training: If you take courses, attend workshops, or purchase business books to improve your skills, these expenses are deductible.

• Bank & Credit Card Fees: Any fees associated with business banking or merchant processing fees (e.g., PayPal, Stripe) are deductible.

Don’t Leave Money on the Table—Let’s Maximize Your Deductions Together!

Missing out on key deductions can cost your business thousands of dollars in unnecessary taxes. The best way to ensure you’re claiming everything you deserve is to work with a tax professional who understands the latest IRS guidelines.

💡 Ready to maximize your deductions and keep more of your money?

📅 Schedule a free consultation with Bernstein Tax Group today! Let’s review your expenses and develop a tax-saving strategy tailored to your business.

🚀 Don’t wait—your tax savings start now! 🚀