Commonly Used Business Deductions

Deductible Expenses
Common Business Deductions

Today we are going to make this short and sweet.  Well, sort of short and somewhat sweet.  Below you will find a list of common business deductions for your small business.  Most of these items can be deducted with no limitations, but there are some regulations regarding limits on certain types of business deductions.  Check with your bookkeeper, CPA or other finance professional to check for nuances.  A good bookkeeper can help you maximize the deductions you can take in your business.  Some things (major purchases like computers, furniture etc) may need to be depreciated over time, but most items can be deducted all at once.

Commonly Used Business Deductions

  • Accounting (Professional Fees)
  • Advertising / Marketing / Promotion
  • Automobile (gas, repairs & maintenance, interest, depreciation) OR mileage rate
  • Bank Charges
  • Cleaning / Janitorial
  • Computer and Internet Expenses
  • Contributions / Donations
  • Dues & Subscriptions
  • Equipment Rental
  • Freight In / Freight Out
  • Gifts
  • Insurance (business, liability, health, etc)
    • Check your state for guidelines on deductibility of health insurance for business owners paid for by the business – you may need to take this as a personal deduction
  • Interest (on business debt – loans, credit cards etc)
  • Legal (Professional Fees)
  • Licenses and Permits
  • Merchant Processing Fees
  • Office Expense
  • Parking
  • Postage
  • Printing and Reproduction
  • Professional Development (Continuing Education, Seminars, Training)
  • Rent
  • Repairs and Maintenance
  • Retirement Plan (Employee Benefits)
  • Security
  • Salaries
  • Supplies
  • Taxes-Payroll
  • Taxes –Properties
  • Telephone (Business Landline and Cell Phone)
  • Travel (Airfare, Hotel, Meals while traveling, Taxi/Transportation, Tips)
  • Utilities (Electric, Water, Gas)
  • Website Maintenance
Items that can potentially be deducted all at once:
  • Furniture and Fixtures
  • Machinery and Equipment
  • Computer Equipment
  • Business Vehicles
  • Software (depreciated over 3 years)

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 Commonly Used Business Deductions

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