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One of the easiest ways to reduce your tax bill is to make sure you’re claiming all of the deductions available to your small businesses.

A tax write-off is a type of deduction that allows you to reduce your taxable income by taking a specific amount of money and then subtracting it from your earnings. It’s a great way to lower your tax bill. However, the IRS requires that the expense you claim meets certain criteria.

You can save hundreds or even thousands of dollars in taxes by taking advantage of the available tax deductions. To claim these tax deductions, you’ll need to keep records of all your business activities.

It can be hard to keep track of all of the different tax deductions that are available to small business owners. In order to make the most of your business’s income is to ensure that you have a good ongoing bookkeeping system.

Below are a few examples of small business tax deductions.

Promotion & Advertising

One of the most common types of tax deductions that can be claimed by small businesses is the cost of advertising. This can include the cost of hiring a graphic designer, printing business cards, or purchasing ad space in various forms of media.

Business Use of a Vehicle

If you own a vehicle and use it for business purposes, you can claim a deduction for operating it. However, this can only be claimed if the costs are related to the business activity.

There are two methods to choose from when deducting vehicle expenses. (Standard mileage rate & actual expense rate.)


Depreciation rules generally require you to spread out the costs of business equipment and furniture over a long-term basis instead of taking a single hit.

The IRS provides numerous ways to write off the full purchase price of equipment and furniture in one year. Expensing items upfront offers a quicker tax benefit.

Research and find a comprehensive guide that explains the ins and outs of depreciation and how it can be claimed for your business, as it is more complicated than other types of deductions.


Another common type of tax deduction that can be claimed by small businesses is the cost of education. If you can demonstrate that the training you’re providing is beneficial to your current business, the IRS will allow you to deduct the full cost.

Common education expenses that can be claimed by small businesses include seminars, training sessions, and subscriptions to professional publications.

Expenses that are not related to your company’s business activity and would allow you to pursue a new career are not eligible for tax deductions.

Home Office Costs

You can deduct a portion of your home office expenses if you own a home office and use it for your business. There are two ways to do this: first, you can claim the entire expense, and second, you can make a partial deduction.

Other deductions include legal fees, moving expenses, travel expenses, charitable contributions, childcare expenses, retirement contributions, and contract labor.

Small businesses must consider how to reduce their tax bill by utilizing the availability of tax deductions. A good record of all expenses will ensure that you can keep these tax benefits.