There are several costs that are tied to business operations that you can deduct:
Write-offs for Business Operation Costs
Retirement Savings Plans
Insurance — Most businesses have general liability, property, and workers’ compensation insurance, but this can include any insurance necessary for your business, trade, or profession.
Certain Taxes — Federal, state, local, and foreign taxes paid as part of business operations.
OTHER COMMON DEDUCTIONS
Business use of your home (mortgage insurance, interest, utilities, repairs, and depreciation)
Pension and profit-sharing plans
Business use of your car (depreciation or lease payments, gas and oil, tires, repairs, tune-ups, insurance, and registration fees)
Professional development and training fees
Tools and software
Travel ( necessary expenses such as transportation, baggage shipping, meals, lodging, etc.)
If you’re planning on claiming small business tax write-offs, make sure that you have the necessary documentation to back it up.
PARTIALLY DEDUCTIBLE EXPENSES
Not every expense is fully deductible, but you may be able to deduct other expenses partially. For example:
Only up to $25 can be deducted for gifts per client or customer
Up to 50% of the cost of meals and entertainment can be deducted
Luxury water transportation can be deducted up to twice the highest federal per diem rate
Restrictions and Exceptions
Personal expenses cannot be deducted as business expenses, but in some cases, if you use something both personally and for your business, you may be able to write off a portion of the cost. The IRS also has strict guidelines on which business expenses and how much of each cost, you can write off. Keep in mind; you are not able to deduct expenses that are considered “lavish or extravagant.”
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