Top Tax Write Offs Every Business Owner Should Know
Intro
Business owners love talking about write-offs. But let’s clear this up:
A write-off doesn’t mean something is free.
A write-off means you can deduct the expense from your business income, so you pay taxes on a smaller number.
Example: If you made $100,000 and spent $10,000 on legitimate business expenses, you only pay taxes on $90,000. At a 25% tax rate, that saves you $2,500. Helpful? Absolutely. Free? Definitely not.
That’s why it’s so important to know which expenses actually qualify. Here are some of the most valuable tax deductions business owners often overlook, and how to use them the right way.
1. Home Office Deduction
If you use a dedicated space in your home exclusively for business, you can deduct a portion of rent/mortgage, utilities, insurance, and more.
Simplified option: $5 per square foot (up to 300 sq. ft).
Big risk: don’t claim your dining room table or couch. The IRS doesn’t buy it.
2. Vehicle Expenses
Two options:
Actual expense method: deduct gas, repairs, depreciation, insurance, etc.
Standard mileage rate: 67 cents per mile (2025).
You can’t use both. You have to pick one method for the year.
Pro tip: Keep a mileage log. “I just know it was about 10,000 miles” won’t cut it in an audit.
Personal example: When I ref basketball or ump baseball, I keep a spreadsheet tracking each trip I make and the miles associated. At the end of the year, I can add it up and deduct it, and it’s worth real money. Drive 5,000 miles? That’s a $3,350 deduction in 2025.
3. Business Meals
Meals with clients or business partners are 50% deductible.
Has to have a clear business purpose (not just “lunch with a friend”).
Keep receipts + jot down who you met with and why.
4. Equipment & Supplies
Computers, cameras, tools, desks, etc.
Section 179 and bonus depreciation can let you write off large purchases in year one.
Don’t forget the smaller stuff, software subscriptions, notebooks, printer ink — it adds up.
5. Retirement Contributions
SEP IRA, Solo 401(k), or SIMPLE IRA.
Contributions reduce your federal and state taxable income, but not your self-employment tax.
Example: If you put $20,000 into a Solo 401(k) and you’re in the 22% federal bracket, that contribution lowers your taxable income by $20,000. That means about $4,400 in federal tax savings (plus whatever you save at the state level).
You will eventually pay taxes when you withdraw the money, but (with good planning) ideally at a lower rate in retirement.
Think of it as choosing whether your money goes to you later or the IRS now. Easy choice.
6. Health Insurance Premiums
If you’re self-employed and not eligible for an employer plan, you can usually deduct health, dental, and even long-term care premiums.
Family coverage counts too.
7. Education & Professional Development
Courses, certifications, books, coaching, conferences.
Must be directly related to maintaining or improving skills for your business.
Examples:
A personal trainer taking a nutrition certification course to better serve clients.
A contractor buying an OSHA safety course (required and deductible).
A café owner attending a coffee expo to learn new brewing methods.
A wedding photographer taking a lighting workshop.
A landscaper buying an online course on bookkeeping.
Or even me, as a financial advisor, paying for a tax-planning course or attending a financial planning conference.
If it’s directly tied to your trade and helps you make money or run the business better, it’s fair game.
8. Marketing & Advertising
Website, branding, ads, business cards, even sponsoring your local little league.
If it promotes your business, it’s deductible.
Compliance Note
Every deduction needs to be:
Ordinary (common in your trade), and
Necessary (helpful for your business).
Keep records, and when in doubt, check with your advisor or CPA.
Closing Thought
Write-offs can save you thousands, but only if you track them properly and don’t get greedy. The IRS has seen every trick in the book, and sloppy bookkeeping will cost you more in the long run.
Want to make sure you’re maximizing your deductions without crossing the line? That’s exactly what I help business owners do, keeping more money in your pocket while staying audit-proof.
