Running a small business in the USA comes with expenses — but the good news is that many of these costs are tax-deductible. Knowing what you can deduct helps you lower your taxable income and keep more of your profits. Here’s a breakdown of the top tax deductions every small business owner should know for the 2025 tax year.
🧾 1. Home Office Deduction
If you work from home, you may be eligible to deduct a portion of your home expenses, such as:
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Rent or mortgage interest
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Utilities (electricity, internet, etc.)
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Home insurance
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Repairs and maintenance
To qualify, the space must be used regularly and exclusively for business.
🚗 2. Business Vehicle Use
Track your business miles! You can deduct:
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The standard mileage rate (check the IRS website for 2025 updates), or
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Actual vehicle expenses like fuel, maintenance, lease payments, and insurance.
💼 3. Startup Costs
If you started your business recently, you can deduct up to $5,000 in startup costs and $5,000 in organizational costs in your first year.
Need help with tax filing or planning?
👉 Contact Us “TaxSprint”
📱 4. Phone and Internet Bills
If you use your phone and internet for business, a portion of these bills may be deductible — just be sure to separate personal from business use.
🧠 5. Professional Services
Fees paid to accountants, bookkeepers, legal advisors, and consultants for business purposes are fully deductible.
🧾 6. Office Supplies & Equipment
From pens to printers, anything purchased for your business operations is deductible. Larger purchases like computers may be depreciated over time.
🌐 7. Website & Software Tools
You can deduct costs related to:
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Domain registration and web hosting
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Software subscriptions (like QuickBooks, Canva, CRM tools)
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Digital marketing tools
📚 8. Training and Education
Courses, seminars, workshops, and even books that help you improve your business or skills are deductible expenses.
👨👩👧 9. Employee Salaries & Contractor Payments
Wages, bonuses, freelance services, and independent contractor payments are all deductible — just make sure to issue the correct 1099s or W-2s.
🧳 10. Business Travel
Traveling for business? You can deduct:
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Airfare and hotel stays
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Meals (50% deductible)
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Transportation and parking
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Conference fees
Keep your receipts and document the business purpose of the trip.
Need help with tax filing or planning?
👉 TaxSprint
✅ Bonus Tip: Always Keep Records
The IRS loves documentation! Keep:
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Receipts
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Bank statements
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Mileage logs
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Invoices
Accurate bookkeeping not only supports your deductions — it also saves you time and stress during tax season.
💡 Final Thoughts
Understanding which deductions you qualify for can significantly reduce your tax bill. At Tax Sprint, we help small businesses across the USA file smart and save more. Whether you’re a freelancer, startup, or growing LLC, our team is here to guide you with personalized tax strategies.
Need help with tax filing or planning?
👉 TaxSprint