The Top 5 Tax Deductions Small Business Owners Overlook

When it comes to tax season, every deduction counts. But many small business owners leave money on the table simply because they aren’t aware of what they can write off.

Here are five commonly missed tax deductions that could help lower your taxable income and keep more money in your pocket:

1. Home Office Deduction

If you use a portion of your home exclusively and regularly for business, you may qualify for a home office deduction. This can include a percentage of your:

• Rent or mortgage interest

• Utilities

• Homeowners insurance

• Repairs and maintenance

✅ Even if you’re renting your home, this deduction may apply!

2. Mileage and Vehicle Expenses

If you use your car for business purposes, you can deduct either:

• The standard mileage rate (for 2025, check the IRS rate)

• Or actual vehicle expenses like gas, repairs, insurance, and depreciation

📌 Pro tip: Keep a detailed mileage log throughout the year to stay audit-ready.

3. Business Meals

Did you know that meals with clients, prospects, or business partners are often 50% deductible? To qualify:

• The meal must be business-related.

• You should document who you met with and the purpose of the meeting.

4. Continuing Education and Training

Courses, certifications, webinars, and even certain books or subscriptions directly related to improving your business skills can be deductible.

5. Professional Services and Software

Fees paid to:

• Bookkeepers

• Accountants

• Lawyers

• Business consultants
  And even business-related software subscriptions (like QuickBooks, CRM tools, Zoom, etc.) are often fully deductible.

Wrapping It Up

Knowing which deductions apply to your business helps you maximize your savings and reduce your tax burden. But more importantly, tracking these throughout the year (not just at tax time) makes life much easier.

Not sure if you're claiming everything you should? Wrap Up Bookkeeping can help you stay organized, maximize your deductions, and avoid the last-minute scramble. Reach out today to make tax season stress-free!