Understanding Tax Deductions for Small Businesses

Many small business owners overpay on taxes simply because they don’t claim all the deductions they’re entitled to. Let’s break down key business deductions that can lower your tax bill.

1. Common Tax Deductions

✔ Office Expenses: Rent, utilities, and office supplies.
✔ Home Office Deduction: A percentage of rent/mortgage, internet, and utilities if you work from home.
✔ Mileage & Travel: Business-related travel, airfare, lodging, and 50% of meals.
✔ Employee Salaries & Benefits: Wages, payroll taxes, and employee insurance.
✔ Marketing & Advertising: Website costs, social media ads, and promotional materials.

2. Lesser-Known Deductions

🔹 Education & Training – Courses, workshops, and certifications related to your business.
🔹 Bad Debt Losses – Unpaid invoices from customers.
🔹 Bank & Merchant Fees – Fees from PayPal, Stripe, or credit card processing.

3. How to Track Deductions

Use accounting software or a bookkeeper to categorize expenses properly. Keep digital copies of receipts for at least three years in case of an audit.

Don’t leave money on the table! Understanding deductions can significantly reduce your tax bill. Not sure what applies to your business? Let Blue Rock CFO help you maximize your tax savings.