Do you know all the deductions you’re eligible for?

Every small business owner knows that deductions help offset costs at the end of the year. But, knowing which expenses quality can be hard to remember. That’s why we’ve compiled a list of the most commonly forgotten deductions so that you don’t miss potential savings.

1. Home Office

If you’re an owner that has part of your home solely dedicated to your business, then you might be able to apply for a home office deduction. This deduction would be based on the square foot percentage that the business is taking up in your home. In addition to the space, owners should keep records of bills related to keeping the office running as these will be taken into consideration for the final amount owed. For example, rent and mortgage payments, utility bills, internet fees and mortgage interest should all be accounted for in order to maximize the return.

2. Startup Fees

New business owners are eligible to deduct up to $5,000 on expenses that were incurred trying to get the company set up. This would be things like marketing costs, office supplies, machinery and legal fees. If costs came in over the $5,000 limit, those receipts should be saved as they can be amortized over time.

3. Mileage

Owners that travel for work are able to deduct these trips on their taxes. If it’s a personal vehicle that’s being used for business only part of the time then only the business trips should be reported for mileage. The standard mileage rate set out by the IRS in 2025 is 70 cents per mile.

Owners that don’t want to go for the average rate also have the option to calculate manually. This is typically seen as the more tedious option since every expense related to their business trips throughout the year will need to be recorded (mileage, gas, maintenance, depreciation, etc.).

4. Bank and Merchant Fees

Small fees can add up to big amounts over time, especially if you’re a business that is getting charged bank or merchant fees on customer transactions.

Fees from places like credit card processors, business bank accounts, PayPal, Stripe or more are all eligible and can be claimed so long as you are able to prove with transaction records.

5. Education and Training

Anything that is purchased to improve business skills or industry knowledge is eligible for a dedication. This could be things like courses, seminars, workshops, certifications and books. Even online courses and programs qualify so be sure to save copies of these receipts throughout the year.

6. Bad Debts

If you had a client that did not pay their invoice in the year you are filing, you might be able to write off the unpaid amount as a business loss. However, this loss can be difficult to prove since you need to have a record of every attempt to contact the client and collect.

If you weren’t paid and are unsure if it counts as a bad debt, consider getting in touch with a financial professional, like us at A.P. Accounting and Tax Services to review the situation before you file.

7. Meals and Entertainment

Many owners forget to keep a record of the meals and events they attended for their business. But, keeping receipts of all of these is important since they could qualify for a 50% deductible. All that you need to prove is that the expense was one that was necessary for your work (for example, having to meet with a client or host a presentation), keep a copy of the receipt and names of who was there.

8. Depreciation on Equipment

Business assets like computers, machinery and office furniture will all depreciate over time. But this depreciation might not be a complete loss. That’s because the IRS sets guidelines in Section 179 outlining all the assets where the depreciation difference is eligible for a deductible.

If you’re an owner that’s still unsure of the expenses or assets you can claim, give us a call at 407-328-5001

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