As long as an expense is “ordinary and necessary” to running a business in your industry, it’s deductible. Given that broad mandate, the IRS doesn’t provide a master list of allowable small-business and startup deductions. As long as the space is exclusively used for business, you can deduct $5 for every square foot, up to $1,500.īusiness expenses are the costs of running a company and generating sales. Or maybe you shuttered your office and started running your company from a spare room. It may seem time-consuming to keep a log separating business and personal use, but you’re losing out on close to $600 in deductions. But some easy moves could significantly lessen your tax bill.įor example, say you’re putting 250 miles per week on your private vehicle to get products out to customers. Sure, you’re focused on customer service and improving your products and services. East, Nordics and Other Regions (opens in new tab)Īttention to expense deductions may not play a prominent role in the financial planning process for small businesses and startups-and that may be costing them.
