What expenses can a small business write off?
Running a small business comes with a lot of expenses—but the good news is that many of them can be written off on your taxes, helping you reduce your taxable income and keep more of what you earn.
Understanding what qualifies as a deductible expense can make a big difference come tax season.
In this guide, we’ll break down exactly what expenses you can write off, how they work, and how to make sure you’re taking advantage of every deduction available.
What Is a Tax Write-Off?
A tax write-off (or deduction) is any ordinary and necessary expense you incur while running your business that can be subtracted from your total income.
Ordinary = common in your industry
Necessary = helpful and appropriate for your business
The lower your taxable income, the less you pay in taxes.
Common Small Business Expenses You Can Write Off
Here are some of the most common—and valuable—deductions small business owners should know about:
🧾 Office Supplies & Equipment
Everyday items used to run your business are fully deductible, including:
Paper, pens, notebooks
Printer ink and postage
Computers, monitors, and office furniture
💻 Software & Subscriptions
If you use software to run your business, it’s typically deductible:
Accounting software
Payroll services
CRM tools
Cloud storage
📢 Marketing & Advertising
Getting your business in front of customers is a write-off:
Website design and hosting
Social media ads
Business cards and flyers
SEO and digital marketing services
🏢 Rent or Office Space
If you rent a space for your business, you can deduct:
Office rent
Utilities
Maintenance costs
🏠 Home Office Deduction
If you work from home, you may qualify for a home office deduction.
To qualify:
The space must be used regularly and exclusively for business
You can deduct a portion of:
Rent or mortgage
Utilities
Internet
🚗 Vehicle Expenses
If you use your car for business, you can deduct:
Mileage (standard rate)
Gas and maintenance (actual expense method)
Parking and tolls
👉 Important: commuting from home to a regular job location is NOT deductible.
🍽️ Meals & Travel
Business-related travel and meals may be partially deductible:
50% of business meals
Flights, hotels, and transportation for work trips
👩💼 Professional Services
Fees paid to professionals are fully deductible:
Accountants
Tax preparers
Attorneys
Consultants
🛡️ Insurance
Business-related insurance premiums can be written off:
General liability insurance
Professional liability insurance
Business property insurance
💼 Employee Wages & Contractor Payments
If you pay employees or independent contractors:
Wages
Bonuses
Payroll taxes
1099 contractor payments
All are deductible business expenses.
Expenses You Can’t Write Off
Not everything qualifies. Common non-deductible expenses include:
Personal expenses
Fines and penalties
Commuting costs
Clothing not specific to your job
How to Track Your Expenses Properly
To make the most of your deductions:
Keep receipts (digital is fine)
Separate business and personal accounts
Track expenses regularly (not just at tax time)
Good recordkeeping is key if you ever need to support your deductions.
Why Tax Write-Offs Matter
Many small business owners miss out on deductions simply because they don’t know what qualifies.
Even small expenses add up—and claiming everything you’re entitled to can:
Lower your tax bill
Improve cash flow
Help your business grow
Final Thoughts
Understanding what expenses you can write off is one of the easiest ways to save money as a business owner. From office supplies to marketing and travel, there are many opportunities to reduce your taxable income.
If you’re unsure whether something qualifies, it’s always better to ask—because missing deductions means leaving money on the table.
Need Help Maximizing Your Deductions?
At Nealon’s Accounting, we help small business owners stay organized, reduce their tax burden, and feel confident in their finances.
Whether you need tax preparation or fully remote bookkeeping, we’re here to help.
📞 Call: 570-983-5266
📩 Reach out today to make sure you’re not missing valuable write-offs