21 tax deductions (write offs) for small businesses in 2025
Introduction
Small businesses can significantly reduce their tax bills by claiming legitimate write-offs for everyday business expenses that are “ordinary and necessary” to operations. Understanding these deductions isn't just helpful, it's essential for keeping your business financially healthy.
Taxes represent one of the largest expenses for most small businesses. Yet many founders and owners leave money on the table by missing deductions they're entitled to claim. From home office expenses and vehicle costs to retirement contributions and the special 20% pass-through deduction, the tax code offers numerous opportunities to lower your taxable income.
This article covers deductions available for the 2024-25 tax year, based on current IRS guidelines. Some provisions, like the Qualified Business Income deduction, are scheduled to expire after 2025, making this year particularly important for tax planning. We'll walk through each major deduction category, explaining what qualifies, what documentation you need, and how to maximize your savings while staying within IRS rules.
What follows is a detailed list of deductions available to LLCs, sole proprietors, and startup founders. Each section focuses on one deduction type with clear explanations and practical guidance you can apply to your business today.
How small business tax deductions work
A tax deduction is an expense you subtract from your business income before calculating taxes. This lowers your taxable income, which means you pay less in taxes. While tax credits directly reduce the amount of tax you owe dollar for dollar, deductions reduce the income that gets taxed in the first place.
The IRS applies a simple test to determine if an expense qualifies as deductible. It must be both “ordinary” and “necessary” for your business. Ordinary means the expense is common and accepted in your industry. Necessary means it's helpful and appropriate for your business operations. A bakery buying flour meets both criteria. A bakery buying a yacht typically doesn't.
Only business expenses qualify for deduction. Personal expenses don't count, even if you occasionally think about work while using them. This distinction matters because the IRS scrutinizes mixed-use expenses carefully. Keep your business and personal finances separate with dedicated business bank accounts and business credit cards. This makes record-keeping simpler and helps prove your expenses are legitimate during an audit.
Good documentation protects your deductions. Effective expense management means saving receipts, invoices, bank statements, and logs that prove each expense was business-related. The IRS doesn't require perfect records, but you need enough evidence to show the business purpose of each deduction. Digital tools and apps make this easier than ever, letting you snap photos of receipts and categorize expenses as they happen.
Your business structure determines how you claim deductions. Sole proprietors and single-member LLCs report income and deductions on Schedule C of their personal tax return. Partnerships and multi-member LLCs file Form 1065. S-corporations file Form 1120S, while C-corporations file Form 1120. Despite these filing differences, the types of expenses you can deduct remain largely the same across all structures. Pass-through entities also qualify for the special 20% Qualified Business Income deduction, which we'll cover in detail later.
21 small business tax deductions you should know about
1. Home office deduction
If you use part of your home exclusively as your primary place of business, you can deduct home office expenses. The IRS offers two methods to calculate this deduction. The simplified method lets you claim $5 per square foot of your office space, up to 300 square feet, for a maximum $1,500 deduction. No complex math required.
The actual expense method requires more work but can yield bigger savings. You calculate the percentage of your home used for business, then deduct that percentage of your housing costs. If your office takes up 10% of your home's square footage, you can deduct 10% of your rent or mortgage interest, property taxes, utilities, homeowner’s insurance, and maintenance costs.
Your home office must meet specific criteria to qualify. The space needs to be used regularly and exclusively for business. A dedicated room works best, but a clearly defined workspace can also qualify. Working from your couch with a laptop doesn't count. You also need to use the space as your principal place of business or regularly meet clients there.
Many business owners skip this deduction, fearing it triggers audits. The truth is simpler. Follow the rules, maintain good records, and claim what you're entitled to. The home office deduction is legitimate and can save you thousands each year.
2. Office rent and utilities (outside premises)
Lease payments for business space are fully deductible. Whether you rent an office suite, retail storefront, warehouse, or even a desk at a coworking space, those rental fees reduce your taxable income. The same applies to storage units, workshops, or any other space you rent for business purposes.
Beyond rent, you can deduct all the costs of maintaining that space. Utilities like electricity, water, and gas qualify. So do property insurance premiums, parking fees, and any maintenance or repairs required under your lease. If your lease makes you responsible for property taxes on the space, those are deductible as well.
This deduction is separate from the home office deduction. You claim one or the other, not both. If you work from home, use the home office deduction. If you rent external space, deduct those costs directly as business expenses.
3. Office supplies and equipment
Everyday office supplies used in your business are tax-deductible. This includes printer paper, pens, ink cartridges, folders, postage, notebooks, and other consumables you use throughout the year. Software subscriptions and SaaS tools essential for business operations also count. Your accounting software, project management tools, and industry-specific programs all qualify as deductible expenses.
Small equipment purchases can be written off immediately if they're not major capital assets. A modest printer, router, or desk lamp gets expensed in the year you buy it. Larger purchases like computers or expensive office furniture might need different treatment under depreciation rules, which we'll cover later. The Section 179 deduction often lets you write off these bigger purchases immediately anyway.
Keep receipts for everything, even small purchases. Those $20 trips to the office supply store add up over a year. If you buy supplies for both personal and business use, only deduct the business portion. Track what percentage goes to each purpose and document it.
4. Business vehicle expenses
If you use a car, van, or truck for business purposes, you can deduct those costs. The IRS gives you two options. The standard mileage rate is simpler. For 2024, you deduct 67 cents per business mile driven. These business mileage reimbursement rates are updated annually by the IRS and cover gas, maintenance, depreciation, and insurance, so you don't deduct those separately when using this method. A mileage reimbursement calculator can help you quickly determine your total deduction based on your logged business miles.
The actual expense method lets you deduct real costs instead. Track your gas, oil changes, repairs, insurance, registration fees, and lease payments. If you own the vehicle, you can also depreciate it. Then calculate your business use percentage. If 60% of your miles are for business, you deduct 60% of these expenses.
Only business travel qualifies for deduction. Driving from home to your regular workplace is commuting, not deductible business travel. But driving from your office to meet a client, between job sites, or to pick up supplies counts as business mileage. Keep a mileage log or use a tracking app to document your business trips. The IRS wants to see dates, destinations, miles, and business purposes.
Special bonus depreciation rules can provide larger first-year deductions for vehicles over 6,000 pounds gross vehicle weight. We'll discuss those opportunities in the depreciation section.
5. Travel expenses
When you travel overnight for business, many trip costs are tax-deductible. Airfare, hotels, rental cars, taxis, rideshares, baggage fees, and even dry cleaning while on the trip qualify as business expenses. Meals during business travel are deductible too, though at 50% like other business meals. Incidental expenses like tips for hotel staff, laundry services, and other small travel-related costs are also deductible.
The trip must be primarily for business to qualify. The IRS looks at the main purpose of your travel and how you spend your time. If you attend a three-day conference and add two vacation days, only expenses from the three business days are deductible. Keep the business and personal portions separate in your records.
Business travel typically means going far enough from your tax home that you need to sleep away from home. A trip across town for a meeting doesn't count as travel. But visiting a client in another city, attending an out-of-state trade show, or meeting suppliers overseas does qualify. The IRS expects you to travel outside your metropolitan area and be gone long enough that you can't reasonably return home the same day.
Save everything that documents the business purpose of your trip. Keep conference registrations, meeting invitations, hotel receipts, and boarding passes. Note which clients you met, what business you conducted, and how the trip benefited your company. Good documentation prevents problems if the IRS questions your deductions later.
6. Business meals
You can deduct 50% of qualifying business meal expenses. This includes meals with clients, prospects, vendors, and business partners where you discuss business. Meals during business travel also qualify for the 50% deduction. The temporary 100% deduction for restaurant meals from 2021-22 has expired, so we're back to the standard 50% rule.
To qualify, meals must have a legitimate business purpose. You need to discuss business before, during, or after the meal. Taking a client to lunch to negotiate a contract counts. Having dinner with a friend where no business gets discussed doesn't. The meal should involve someone besides yourself who could reasonably help your business.
Documentation requirements are strict for meal deductions. Save the expense receipt and note who attended, their business relationship to you, and what business matters you discussed. The IRS wants these four pieces of information for every business meal you deduct. Without proper records, they can disallow the deduction entirely.
Keep expenses reasonable for your business and industry. While there's no specific dollar limit, lavish or extravagant meals might get extra scrutiny. A startup taking clients to the most expensive restaurant in town every week raises red flags. Match your meal expenses to your business reality.
7. Phone and internet expenses
You can write off the cost of telecommunications needed for your business. If you use your cell phone and home internet for both work and personal purposes, deduct the portion related to your business. For instance, if roughly half your phone usage is work-related, you'd deduct 50% of your monthly bill.
A dedicated business phone line or separate internet connection simplifies things. Since they're exclusively for business, these are 100% deductible. Many freelancers and consultants get a second phone specifically for work to avoid the hassle of calculating percentages.
If you bought the phone device primarily for business, it qualifies for deduction. Monthly service plans, data packages, and international calling fees for business purposes also count. If you pay for Wi-Fi while traveling for work or use a mobile hotspot for business, those expenses are fully deductible.
You don't need detailed call logs to justify your deduction, but you should have a reasonable method for determining business use. Review a typical month's phone bill, highlight business calls, and use that percentage going forward. Keep documentation showing how you arrived at your business use percentage in case the IRS asks.
8. Business insurance premiums
The cost of business insurance is fully tax-deductible. General liability insurance, professional liability coverage, commercial property insurance, workers' compensation, commercial auto insurance, and cyber liability policies all qualify. These premiums protect your business and count as ordinary business expenses.
If you provide health insurance for employees, those premiums are also deductible business expenses. The same goes for dental, vision, and other employee insurance benefits. State unemployment insurance contributions are also deductible since they are required costs of having employees.
Life insurance gets different treatment. Premiums for policies where the business or owner is the beneficiary generally aren't deductible. Key person life insurance falls into this category. The tax code treats these as investments rather than business expenses.
For home-based businesses, your homeowner’s or renter’s insurance gets partially deducted through the home office calculation. Don't double-count by deducting it separately as a business expense.
9. Self-employed health insurance deduction
If you're a small business owner paying your own health insurance, you can deduct 100% of those premiums for yourself, your spouse, and dependents. This special deduction applies to sole proprietors, LLC members, partners, and S-corporation shareholders who own more than 2% of the company. It covers medical, dental, vision, and qualified long-term care insurance premiums.
This deduction technically doesn't go on Schedule C for sole proprietors and single-member LLCs. Instead, it reduces your adjusted gross income directly on Form 1040. The tax benefit is the same as a business deduction, giving self-employed individuals similar treatment to employees whose employers pay for health coverage.
You can't claim this deduction if you're eligible for health insurance through another employer or your spouse's employer. The deduction is specifically for business owners who must buy their own coverage. It's also limited by your business profit. You can't deduct more in premiums than your business earned in net income.
The deduction includes premiums for your spouse and dependents under age 27, even if they don't work in your business. Qualified long-term care premiums are subject to age-based limits that adjust annually, but medical, dental, and vision premiums have no dollar caps.
10. Employee salaries and benefits
The salaries and wages you pay employees are fully deductible business expenses. This includes regular pay, overtime, bonuses, and commissions. For many growing businesses, payroll represents the largest deduction, significantly reducing taxable profit.
As a sole proprietor, partner, or LLC member, you can't deduct payments to yourself as salary. Your compensation is the business profit that flows through to your tax return. However, if you operate as a C-corporation or S-corporation and work as an employee of your company, your W-2 wages are deductible to the corporation.
The employer's share of payroll taxes is also deductible. This includes your portion of Social Security, Medicare, federal unemployment tax, and state payroll taxes. Benefits you provide to employees add to your deductions, too. Health insurance premiums, retirement plan contributions, paid time off, and education assistance all count as deductible compensation expenses.
The IRS expects compensation to be reasonable for the work performed. Paying a family member an inflated salary to increase deductions will trigger scrutiny. Document job duties and ensure pay aligns with what you'd pay an unrelated employee for the same work.
11. Independent contractor (freelancer) payments
Money paid to independent contractors or freelancers for business services is fully deductible. Whether you hire a web designer, contract software developer, freelance writer, or virtual assistant, their fees count as business expenses. This includes both one-time projects and ongoing contractor relationships.
Unlike employees who may have non reimbursable expenses they hope to deduct on their personal returns (though employee deductions have been largely eliminated since 2018), contractors typically build all their costs into their invoiced rates. They handle their own business expense deductions on their Schedule C. This is one of the key differences between contractors and employees. Contractors manage their own expenses and tax deductions as independent businesses.
Contractors differ from employees in important ways. You don't withhold payroll taxes from their payments or provide benefits. They invoice you for their services, and they're responsible for paying their own taxes. For your business, contractor payments are straightforward deductions, similar to any other vendor expense.
If you pay an unincorporated contractor $600 or more during the year, you must issue them a Form 1099-NEC by January 31. This requirement applies to individuals and unincorporated businesses, but not to corporations. While this is a compliance issue rather than a deduction rule, failing to issue required 1099s can result in penalties and questioned expenses.
You can't treat payments to yourself as contractor expenses. Some business owners try to pay themselves as contractors from their own companies, but this doesn't create a deduction. The rule applies only to legitimate outside service providers.
12. Interest on business loans (and bank fees)
If your business has loans or business lines of credit, the interest paid is tax-deductible. This includes interest on bank loans, high limit business credit cards, lines of credit, and mortgages on commercial property. The debt must be for legitimate business purposes, and you must be legally obligated to repay it.
Standard bank fees and charges on online business banking accounts are deductible, too. Monthly service fees, ATM charges, wire transfer fees, overdraft fees, and merchant processing fees all qualify. Annual fees on business credit cards count as well. These routine banking costs are ordinary business expenses.
For mixed-use credit cards or loans, only deduct the business portion of interest. If you use a credit card 70% for business and 30% for personal expenses, you can deduct 70% of the interest charges. Keep clear records showing how you calculated the business percentage.
Most small businesses can deduct all their business interest without limitation. The tax code does impose restrictions on interest deductions for larger businesses with gross receipts over $27 million (for 2024), but these limits rarely affect typical small businesses and startups.
13. Depreciation of business assets
When your business buys major assets like equipment, computers, vehicles, or furniture, you often can't deduct the full cost in the purchase year. Instead, you spread the cost over the asset's useful life through depreciation. A computer might depreciate over five years, office furniture over seven years, and commercial buildings over 39 years.
Small businesses get a powerful advantage through Section 179 expensing. This provision lets you deduct the full cost of qualifying assets immediately instead of depreciating them. For 2024, you can expense up to $1,160,000 worth of equipment, machinery, vehicles, computers, and other business property. If you buy a $50,000 machine for your business, you can potentially deduct the entire amount this year rather than spreading it over multiple years.
Bonus depreciation provides another accelerated deduction option. For 2024, you can deduct 60% of the cost of new equipment immediately through bonus depreciation, then depreciate the remaining 40% normally. This drops to 40% for 2025, then 20% for 2026, before phasing out completely. You can combine bonus depreciation with Section 179 for maximum first-year deductions.
These accelerated depreciation methods offer immediate tax relief and encourage equipment purchases. But remember that taking large deductions now means you won't have those deductions in future years. Some businesses prefer spreading deductions over time to offset income in multiple years. Depreciation rules get complex, especially for vehicles and mixed-use property. Consider working with a tax professional to maximize these deductions properly. Form 4562 is where you'll report depreciation and Section 179 deductions on your tax return.
14. Startup and organizational expenses
Expenses incurred before your business officially opens can be written off, too. The IRS lets you deduct up to $5,000 of startup costs in your first year, plus another $5,000 of organizational costs. Startup costs include market research, advertising before opening, travel to find suppliers or distributors, and training for you or initial employees. Organizational costs cover legal fees for forming your LLC or corporation, state filing fees, and the cost of organizational meetings.
Your total startup expenses must be $50,000 or less to claim the full $5,000 immediate deduction. Above that threshold, the immediate deduction phases out dollar for dollar. If you spent $53,000 on startup costs, your immediate deduction drops to $2,000. Any startup costs you can't deduct immediately get amortized over 15 years, giving you smaller deductions spread over time.
Many new business owners miss these deductions because they don't know how to track pre-opening expenses. If you're planning to start a business, begin keeping receipts and records as soon as you start spending money on it. That market research trip, those initial legal consultations, and the website you built before launch all potentially qualify.
The startup deduction applies only to businesses that actually begin operating. If you investigate starting a business but never launch it, those investigatory costs aren't deductible at all. Make sure your business becomes active to claim these expenses.
15. Business losses and bad debts
If your business expenses exceed your income in a given year, you have a net operating loss. For sole proprietors and LLC members, that loss can offset other income on your personal tax return, reducing your overall tax bill. Under current rules, you can carry losses forward to future years to offset future profits, but you can't carry them back to previous years for most businesses.
The tax code limits how much loss you can use in future years. Net operating losses can only offset 80% of taxable income in any carryforward year. If you have a $100,000 loss this year and $100,000 in profit next year, you can only use $80,000 of the loss, leaving $20,000 in taxable income. The remaining $20,000 loss carries forward to the following year.
Bad debts are money owed to your business that you can't collect. If a client refuses to pay an invoice or a business loan you made goes bust, you might be able to deduct that bad debt. The key requirement is that you previously counted the income or made an actual loan. Cash-basis taxpayers usually can't deduct unpaid invoices since they have never recorded the income. But if you actually loaned money to another business and won't be repaid, that could qualify as a deductible bad debt.
To claim a bad debt deduction, document your collection attempts and why the debt is worthless. Show that you tried to collect through calls, letters, or legal action. Write the debt off your books and keep records explaining why it won't be paid. The IRS wants to see that you made genuine efforts to collect before giving up.
16. Legal and professional fees
Fees paid to attorneys, accountants, consultants, and other professionals for business services are deductible. Legal fees for reviewing contracts, collecting debts, handling business disputes, or navigating regulations all qualify. The same goes for accounting services, tax preparation, bookkeeping, and business consulting. These professional services help your business operate properly and count as ordinary business expenses.
For sole proprietors, the cost of preparing the business portion of your tax return is deductible on Schedule C. This includes preparing Schedule C itself, business-related forms, and any professional advice about business taxes. Personal tax prep fees don't qualify as business expenses, so allocate appropriately if your accountant handles both.
Only the business portion of professional fees is deductible. If you hire an attorney who spends half their time on business matters and half on personal issues, only deduct 50% of their fee. Keep clear records showing how you split mixed services between business and personal use.
Professional service fees can add up quickly, but they're worthwhile deductions. Hiring experts to handle legal compliance, tax planning, or business strategy often saves more than it costs. Track these expenses carefully and deduct them fully.
17. Marketing and advertising
You can write off all costs to promote your business. Whether you run Google Ads, Facebook campaigns, print flyers, sponsor local events, or build a company website, those expenses are fully deductible. Marketing costs are considered ordinary and necessary for attracting customers and growing your business.
Digital advertising expenses all qualify. Pay-per-click campaigns, social media ads, display advertising, and sponsored content are deductible when you pay for them. The same applies to traditional marketing like newspaper ads, radio spots, trade show booths, and direct mail campaigns. Even branded merchandise like t-shirts, pens, or tote bags with your logo counts as an advertising expense.
Website costs are also deductible. Domain registration, hosting fees, website design, and ongoing maintenance all qualify. If you hire an SEO consultant or content writer to improve your online presence, their fees are marketing expenses. Email marketing platforms, social media management tools, and customer relationship management software also fall into this category.
There's no percentage limitation on advertising deductions like there is with meals. You deduct 100% of reasonable marketing expenses. Even aggressive advertising campaigns are fully deductible as long as they promote your business. The IRS recognizes that businesses need to market themselves to survive and grow.
18. Continuing education and training
Spending on education that improves your existing business skills is fully deductible. Industry conferences, professional workshops, online courses, and certification programs all qualify when they relate to your current business. A graphic designer taking an advanced design course can write off the tuition. A consultant attending their industry's annual conference can deduct registration fees and associated travel costs.
The education must maintain or improve skills needed in your present business. Training that qualifies you for a new trade or business doesn't count. A real estate agent can't deduct law school tuition as a business expense, even if legal knowledge might help with contracts. But that same agent could deduct continuing education courses required to maintain their real estate license.
Professional subscriptions and materials count too. Industry journals, trade publications, business books, and online learning platforms are deductible when they relate to your field. If you buy a membership to access training videos or industry research, that's a legitimate education expense.
If your business pays for employee training, those costs are fully deductible as well. Sending staff to conferences, paying for professional development courses, or bringing in trainers all qualify as business expenses that benefit your company.
19. Retirement plan contributions
When a small business contributes to a retirement plan, those contributions are deductible. This includes funding your own SEP IRA or Solo 401(k) as a business owner, or matching employee 401(k) contributions. These deductions can be substantial. A self-employed person might contribute and deduct up to $69,000 to a Solo 401(k) in 2024, or $76,500 if they're 50 or older with catch-up contributions.
The high contribution limits make retirement plans particularly valuable for profitable small businesses. A SEP IRA lets you contribute up to 25% of compensation or $69,000 for 2024, whichever is less. Solo 401(k) plans allow both employee deferrals and employer contributions, potentially letting you save even more. These contributions reduce your current taxable income while building tax-deferred retirement savings.
If you have employees and offer them a retirement plan, your matching contributions and profit-sharing deposits are deductible business expenses. A SIMPLE IRA requires you to match employee contributions up to 3% of their salary, but that match is fully deductible. Traditional 401(k) plans offer more flexibility in matching formulas, and all employer contributions are deductible.
Setting up a retirement plan also qualifies you for a tax credit separate from the deduction. Small businesses can claim up to $5,000 per year for three years to offset plan startup costs. Between the deductions for contributions and credits for starting a plan, retirement benefits offer significant tax advantages while helping you and your employees prepare for the future.
20. Charitable contributions
Generous giving can yield a tax break, but how you claim it depends on your business structure. If your business donates to qualified 501(c)(3) charities, those contributions are generally deductible, though the process varies by entity type.
For sole proprietors, LLCs taxed as partnerships, and S-corporations, charitable contributions pass through to the owners' personal tax returns. You'd claim these donations on Schedule A as itemized deductions, not as business expenses on Schedule C. This means you only benefit if you itemize deductions rather than taking the standard deduction.
C-corporations can deduct charitable contributions directly on their corporate tax returns, limited to 10% of taxable income. Any excess carries forward for up to five years. This direct deduction makes charitable giving simpler for C-corporations than for pass-through entities.
Documentation matters for all charitable deductions. Get a receipt for every donation. For contributions of $250 or more, you need written acknowledgment from the charity stating the amount and confirming you received no goods or services in return. Without proper documentation, the IRS will disallow the deduction entirely.
21. Moving/relocation expenses
If you relocated your business, you might be able to deduct some moving costs. Incorporated businesses can generally deduct the full expense of moving to a new location. This includes packing and shipping equipment, transporting inventory, moving office furniture, and travel costs during the relocation.
For self-employed individuals, the rules are stricter. While the personal moving expense deduction was suspended from 2018 through 2025, business relocations may still qualify under certain conditions. The move must be at least 50 miles farther from your old home than your previous workplace was. You also need to work full-time in the new location for at least 39 weeks during the first year after moving.
Deductible moving expenses include the cost of packing and transporting business equipment, supplies, and inventory. Storage fees during the transition period count too. If employees relocate with the business, their moving expenses paid by the company are deductible business expenses, though they may be taxable income to the employees.
Simply moving your home doesn't qualify as a business move, even if you have a home office. The deduction targets legitimate business relocations where the business itself moves to a new market or facility. Given the complexity of moving expense rules and recent tax law changes, consider professional guidance if you're planning a significant business relocation
20% pass-through deduction (Qualified Business Income deduction)
Owners of pass-through businesses may take a special deduction equal to 20% of their qualified business income. If your business profit is $100,000, you could potentially deduct an extra $20,000, paying tax on only $80,000. This deduction applies to sole proprietors, LLC members, S-corporation shareholders, and partners through the 2025 tax year.
The full deduction is available if your taxable income falls below certain thresholds. For 2024, those thresholds are $191,050 for single filers and $382,050 for joint filers. Below these amounts, you generally get the full 20% deduction regardless of your business type. The deduction phases out above these income levels, especially for specified service businesses like law firms, medical practices, and consulting companies.
This isn't a deduction for expenses you paid. It's a deduction based on the income your business generates. You don't need to buy anything or change how you operate to qualify. Just having eligible business income triggers the deduction automatically, though calculating it can get complex for higher earners.
The Qualified Business Income deduction is scheduled to expire after 2025 unless Congress extends it. This makes 2024 and 2025 particularly important years for tax planning. After 2025, pass-through business owners could see their tax bills increase significantly if this provision disappears. Consider maximizing business income during these years to take full advantage while the deduction exists.
Track and maximize these tax deductions automatically
Every dollar in legitimate deductions represents money that stays in your company rather than going to taxes. The deductions covered in this guide can add up to thousands or even tens of thousands in tax savings each year. Taking time to understand and claim these deductions directly impacts your business's financial health and growth potential.
Good record-keeping makes tax time easier. Track expenses throughout the year using accounting software, apps, or even simple spreadsheets. Expense management software can automate much of this process, helping you save receipts digitally, categorize expenses as they occur, and maintain documentation for each deduction. When tax time arrives, you'll have everything ready instead of scrambling to reconstruct a year's worth of business activity.
Tax laws change regularly, and 2025 marks a significant transition year. The 20% Qualified Business Income deduction expires after this year unless Congress acts. Bonus depreciation continues phasing down. New provisions might emerge while others disappear. Stay informed about these changes or work with someone who tracks them for you. What you don't know can cost you money.
While guides like this provide valuable information, every business situation is unique. A tax professional can identify deductions specific to your industry, help with complex calculations like depreciation, and ensure you're maximizing benefits without crossing legal boundaries. The cost of professional advice often pays for itself through additional tax savings and peace of mind.
Modern spend management software can help you track and maximize these tax deductions automatically. Brex's corporate card categorizes expenses in real-time, while its spend management software creates audit-ready documentation for every transaction. Combined with business banking that integrates with your accounting software, you'll never miss a deduction again. Brex’s accounting automation software pulls everything together, making tax time simpler and ensuring you capture every eligible expense.
Ready to streamline your business finances and maximize your tax deductions? Sign up for a Brex card today.
*This is not tax advice, consult your tax professional, etc.
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