5 Tax Deductions Small Business Owners Often Overlook

Small business owners work hard to earn every dollar, but too often, they miss opportunities to keep more of it at tax time. The IRS allows deductions that can reduce taxable income and lower your tax bill, yet many business owners either don’t know about them or don’t track expenses properly.

Here are five small business tax deductions you may be overlooking and how to make sure you don’t leave money on the table.

1. Home Office Deduction

If you run your business from home, part of your housing costs may be deductible. This can include a portion of rent or mortgage, utilities, and internet service.

To qualify, the space must be used regularly and exclusively for business.

2. Vehicle Expenses

Whether you drive to client meetings, run errands, or deliver goods, vehicle costs add up — and they’re deductible. You can choose the standard mileage rate or track actual expenses like gas, insurance, and maintenance.

Keep a mileage log to stay compliant with IRS requirements.

3. Professional Services

The fees you pay to your CPA, attorney, business consultant, or other professionals are fully deductible. Not only do these services save you time and reduce risk — they can also reduce your taxable income.

Save invoices and categorize them as professional fees in your books.

4. Employee Benefits and Retirement Contributions

Offering health insurance, retirement plans, or other employee benefits is not only good for your team — it can also be deductible for your business. Even contributions you make to your own retirement account may qualify.

Explore SEP IRAs or solo 401(k)s if you’re self-employed.

5. Education and Training

Courses, workshops, certifications, and even industry-related books can be deducted as long as they improve your skills or maintain your business knowledge.

Document how the expense relates to your business in case of an audit.

The tax code is full of opportunities to lower your taxable income, but only if you know where to look. By tracking expenses carefully and working with a CPA who understands small business deductions, you can maximize savings and keep more of your hard-earned money.

At Ciaccia CPA, we help business owners uncover missed deductions, plan smarter, and reduce tax stress. Don’t leave money on the table and get the guidance you need today.