7 Tax Deductions Small Businesses Miss Every Year

01Home Office Expenses

If you use part of your home regularly and exclusively for business, you can deduct a portion of your rent or mortgage interest, utilities, and insurance. The IRS simplified method lets you deduct a flat rate per square foot, which keeps the paperwork light. Keep a photo of the space and a measurement on file.

02Vehicle & Mileage

Driving to a client, the bank, or the supply store all counts. You can track actual expenses or take the standard mileage rate — usually mileage wins for simplicity. The key is a log: date, destination, purpose, and miles.

03Retirement Contributions

A SEP-IRA or Solo 401(k) lets self-employed people set aside far more than a standard IRA, and the contribution lowers taxable income dollar for dollar. It's one of the largest levers a profitable small business has.

04Health Insurance Premiums

If you're self-employed and pay for your own health insurance, those premiums are often deductible — including coverage for your spouse and dependents. It's an above-the-line deduction, so you get it even without itemizing.

05Startup & Organizational Costs

Legal fees, market research, and initial advertising spent getting the business off the ground can be deducted, up to a limit in the first year with the rest amortized over time.

06Software & Subscriptions

Accounting software, cloud storage, professional memberships, and industry publications are ordinary business expenses that add up to a meaningful deduction across a full year.

07Professional Fees

Fees paid to an accountant, bookkeeper, or attorney for your business are fully deductible. The cost of getting your taxes done correctly is itself a write-off.

This article is general information, not individualized tax, legal, or financial advice. Every situation is different — reach out and we'll look at yours directly.