1. Home Office Expenses
If you work from home, you may be able to deduct part of your rent or mortgage interest, utilities, and internet. The deductible portion is based on the size of your home office compared to your total living space.
2. Vehicle Costs
Gas, insurance, repairs, lease payments, and even parking fees can be deductible if the vehicle is used for business. Keep a mileage log to separate business from personal driving.
3. Professional Services
Fees paid to accountants, bookkeepers, or lawyers are fully deductible. These costs often get overlooked, but they directly reduce your taxable income.
4. Meals and Entertainment
When you take clients, suppliers, or partners out for business purposes, 50% of the meal cost is deductible. For example, a $100 meal means you can deduct $50 on your taxes.
5. Technology and Software
Laptops, cell phones, bookkeeping software, and even your website expenses are deductible if they’re used for business purposes.
6. Advertising and Marketing
From social media ads to flyers, promotional materials, and your business website, these costs are fully deductible as long as they promote your business.
7. Bank and Interest Fees
Bank service charges, credit card processing fees (like Stripe or PayPal), and interest on business loans or lines of credit are all deductible, but they’re easy to forget.