Top Tax Deductions for Your Small Business

Eager to make the most out of every dollar you earn with your small business? If so, then you’ll want to have a solid understanding of all the tax deductions available to you. The IRS provides extensive potential deductions for small business owners – the tricky part is simply knowing which ones are relevant or not.

When it’s time for income tax filing in Mesa, make sure that you’re aware of these can’t-miss tax deductions that could make a difference in your end-of-year bottom line.


All the utilities that power your business are entirely tax-deductible, which means that you can deduct all your electricity, telephone lines, internet connection, and gas power come tax season. Keep in mind that these utilities have to be essential to operating your business – you can’t deduct the internet expenses for texting your friends and family or watching Netflix, for example. After all, this distinction has become more difficult to track given the growth of remote work in recent years.

Automotive expenses

When you have to hit the road for your business, you’ll likely have a deduction in store. You can deduct a whole swath of car-related expenses, although it can feel like an enigma to figure out exactly how many costs do and don’t qualify. Since it can be challenging to track the exact number of miles you travel for business, you have two primary options for getting automotive tax deductions: you can either proactively record every mile driven or apply the IRS’s standard mileage rate to your total travel distance. While the standard mileage rate is frequently the simplest way to get deductions, recording exact mileages and expenses will almost always result in more significant amounts.

Accounting, Legal, and Professional Fees

Do you outsource accountants for income tax filing in Mesa or call a local law firm for legal counsel? If so, then those fees are tax-deductible. Costs for professional services that are vital to keeping your business running can be 100% deducted. This deduction applies to any kind of outside service that helps your business, such as legal advice, tax preparation, and bookkeeping. As with other deductions, these deductions only apply when the services are used for business purposes.

Business Insurance

Insuring your business assets isn’t just the responsible thing to do – it can also entitle you to some hefty deductions. You can deduct business insurance premiums from your expenses, including a wide range of different business insurance options. Whether you have life insurance, medical insurance, or property coverage for your company, you’ll likely be able to get a deduction for it.

Advertising and marketing

Just about any costs related to advertising and promoting your business can be fully deducted. Whether you’ve mass-produced business cards, designed a new logo, printed a banner, or designed a new website, expenses incurred by marketing your company are eligible for total deductions. Keep in mind that this rule doesn’t apply to governmental lobbying or other attempts to influence legislators, though.

Next time you sit down to start working on your income tax filing in Mesa, don’t miss out on the chance to make every dollar count. Remember these critical tax deductions, and you’ll be on your way to some healthy returns.

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