What type of expenses can I claim on my small business?

Marketing/Advertising- Any expenses related to raising awareness about your business, product, or service.

Miles OR Expenses- Miles from your home to clients, jobsites, and running business related errands. OR expenses for fuel, tires, brakes, repairs, oil changes, etc. -Often its easier and more valuable to track miles.

Commission and fees- If you hire outside help, ex. IT company, or credit card processing fees.

Contract labor- If you have a nonemployee working for you; Must issue 1099-NEC. Depreciation- If you have equipment, machinery, furniture, electronics, etc.

Insurance- Liability policy for your business

Interest- If you pay interest on business credit card or loans.

Legal and professional fees- Attorney, Tax preparation, etc.

Office- Supplies for the office. Post-it, staples, paper, toner, etc.

Rent- Vehicle, machinery, or building.

Repairs and maintenance- Any repairs/maintenance associated with doing business. Supplies- Supplies for the business, not related to the office.

Taxes and licenses- Any taxes or licenses associated with the business.

Travel- Must be business related, any personal expenses do not qualify. Example: 3-day conference in FL. But you stay 5 days. Only expenses for the conference are deductible.

• Deductible: Business expenses

  • Admission to the conference,

  • 3 days of hotel,

  • 3 days of car rental,

  • 3 days of meals at 50%,

  • parking for convention,

  • flights. Note: the entire flight is deductible so long as it goes to and from your conference.

• Not Deductible- Personal expenses

  • 2 days at the hotel,

  • 2 days of car rental,

  • 2 days of meals,

  • Disneyworld, parking at the beach, etc. (or other personal entertainment).

Meals-50% or 100%

• 50% Most meals and travel related food expenses. Meals for employees or clients, meals during business meetings.

• 100% Limited to certain meals which must serve a clear business purpose with no personal benefit element. Company-wide events, public events, or meals sold to customers.

Utilities- Internet, cellphone, any other utilities exclusive to the business.

Business use of home- the space must be ONLY for business. No pets, exercise equipment, laundry, etc. May include household utilities, mortgage interest, and property taxes. Need square footage of home and of office space.