If you’re self-employed or own a small business, you can deduct eligible business expenses to pay fewer taxes. These expenses must be common for your type of business and also necessary for your operations.
Common tax-deductible business expenses
- Phone and internet
- Business meals (generally, 50% of qualifying food and beverage costs can be deducted)
- Insurance premiums, including liability coverage, workers’ compensation, and business-interruption insurance
- Health insurance premiums
- Independent contractor payments
- Shipping and postage
- Equipment rental
- Employee salaries and benefits
- Taxes and licenses, including payroll taxes, personal property taxes, real estate taxes paid on business property, sales tax, and business licenses
- Business travel expenses, including travel to and from your destination (not including travel to and from your regular place of work), parking and toll fees, taxi costs, and accommodation
- Software subscriptions
- Depreciation
- Supplies, utilities, and repairs
- Rent paid on business property
- Car and truck expenses
- Interest on business debt
- Mortgage interest
- Bad debts
- Bank fees/credit card convenience fees
- Startup costs
- Moving expenses
- Membership dues for boards of trade, business leagues, chambers of commerce, civic or public service organizations, professional organizations, real estate boards, and trade associations