Small Business Tax Deductions You Don't Want to Miss
By Adam Wayne
Published in 2024. Dates and dollar amounts in this article are for the tax year it covers, and tax rules change. Check with Adam before acting on it.
As a small business owner, every deduction counts. Here are some commonly missed tax deductions that could significantly reduce your tax liability.
Home Office Deduction
If you use part of your home exclusively for business, you may qualify for the home office deduction. You have two options:
- Simplified method: $5 per square foot up to 300 sq ft (max $1,500)
- Actual expense method: Percentage of home used for business × total home expenses
Vehicle Expenses
Business use of your vehicle is deductible. For 2024, the standard mileage rate is 67 cents per mile. Alternatively, you can deduct actual expenses like gas, maintenance, and depreciation based on business use percentage.
Professional Development
Education and training that maintains or improves skills needed in your business are deductible. This includes conferences, online courses, and industry publications.
Remember, expenses must be ordinary and necessary for your business to be deductible. When in doubt, consult with a tax professional to ensure you're maximizing your deductions while staying compliant.