How Can I get more Business Deductions
Sharon Gross, CPA
Maximizing your business deductions isn't just about saving money during tax season-it's about being strategic throughout the year. By understanding what qualifies as a legitimate business expense and keeping organized records, you can significantly reduce your taxable income while maintaining compliance.
1. Know What Qualifies as a Deduction
The IRS allows deductions for ordinary and necessary expenses directly related to your business. These include office supplies, marketing costs, software subscriptions, legal and professional fees, vehicle mileage, travel, meals (50% deductible), and more. Home office expenses and a portion of utilities can also qualify if used exclusively for business.
2. Track Expenses Meticulously
To unlock deductions, you must have solid documentation. Use apps or accounting software to log receipts, mileage, and recurring bills. Keep digital backups of receipts and label expenses clearly. If you use a vehicle or home for both personal and business purposes, track the percentage of use accurately to support your deduction claims.
3. Work With a CPA for Proactive Planning
A Certified Public Accountant can help you identify hidden deduction opportunities-like depreciation, Section 179 write-offs, and health insurance premiums. They can also help you restructure your operations to qualify for tax benefits you may have missed, including hiring family members, adopting an accountable reimbursement plan, or setting up retirement contributions through a SEP IRA or Solo 401(k).
The key to more business deductions lies in knowledge, organization, and planning. A CPA who knows your business can tailor a strategy that helps you save more, year after year.
