Top Tax Write Off's for Small Businesses

At Designed by Sisterhood, we understand the challenges small business owners face, especially when it comes to navigating tax deductions. Managing a business is demanding enough without the added stress of figuring out what qualifies as a write-off. That's why we're here to support you with actionable insights that can make a real difference.

Small businesses can take advantage of a variety of tax deductions to reduce taxable income and keep more money in your pocket. Here’s a personalized guide to some common write-offs:

1. Home Office Deduction

If part of your home is used exclusively for your business, you can deduct related expenses such as rent/mortgage, utilities, maintenance, and depreciation.

2. Business Equipment and Supplies

From computers and printers to software and office essentials, many tools used for your business are deductible. Through Section 179, you may even be able to fully deduct some equipment purchases in the same year you buy them.

3. Vehicle and Travel Expenses

• Mileage: Deduct business-related mileage using the standard rate or actual expenses for fuel, maintenance, and depreciation.

• Travel: Business trip costs, including airfare, lodging, meals (up to 50%), and transportation, are deductible.

  
  

4. Advertising and Marketing

Expenses for digital ads, website hosting, business cards, and promotional materials all qualify for tax deductions.

5. Employee Salaries and Benefits

Wages, bonuses, commissions, and benefits such as health insurance and retirement plans are fully deductible.

6. Contract Labor

Payments to freelancers or independent contractors are deductible (don’t forget to issue 1099 forms for those earning $600+).

7. Rent or Lease

Office space, retail locations, or equipment leases—renting for your business is deductible.

8. Utilities and Internet

Expenses for electricity, water, internet, and phone services related to business operations can be written off.

9. Professional Services

Fees paid to accountants, lawyers, consultants, or other professionals for business purposes are deductible.

10. Education and Training

Workshops, industry courses, and subscriptions to professional publications can be deducted as business expenses.

11. Insurance

Premiums for business liability, property, worker’s compensation, or employee health insurance are tax-deductible.

12. Interest on Business Loans

Interest paid on loans, credit cards, or financing exclusively for business use qualifies as a deduction.

13. Depreciation

Deduct the gradual loss in value of business assets such as buildings, vehicles, and equipment over time.

14. Start-Up Costs

You can deduct up to $5,000 in start-up expenses and $5,000 in organizational costs in your first year.

15. Bad Debts

Unpaid money owed to your business may be deductible if deemed uncollectible.

16. Taxes and Licenses

State, local, payroll taxes, and business licensing fees can reduce your taxable income.

17. Retirement Contributions

Contributions to SEP IRAs, SIMPLE IRAs, or 401(k) plans for you and your employees are deductible.

18. Miscellaneous

Bank fees, memberships, certifications, and other industry-related costs can also qualify.

At Designed by Sisterhood, we’re not just here to offer services like social media marketing, graphic design, or facilities management—we’re here to support every facet of your success. Whether it’s saving you time, money, or stress, let us help simplify your journey as a small business owner.