What Expenses Are Actually Deductible for Your Small Business?

When it comes to taxes, every small business owner wants to maximize deductions. But understanding what is (and isn't) deductible can feel like navigating a maze. Deducting the right expenses reduces your taxable income, saving you money and boosting profitability.

Ordinary and necessary business expenses are generally deductible. These include office supplies, business insurance, advertising, legal fees, travel expenses, and meals (subject to 50% limits). However, areas like entertainment, gifts, and home office expenses come with strict rules that must be followed. Good documentation is key: save receipts, keep a mileage log, and note the business purpose of each expense.

By staying organized and knowing the rules, you can claim the deductions you're entitled to—while avoiding red flags that could trigger an audit.