What Are Some Deductions I Might Be Missing?

Business owners sometimes forget to deduct many business expenses. If you work from home for instance, and currently a lot of people do, you can take home-office deductions. A home office expense is calculated either by the number of rooms or by the square footage percentage you use as your office.  Let’s say your apartment has four rooms and you use one for business only.  One-fourth of your rent, then, would be a home-office expense. As well as one-fourth of your utilities. One-fourth of any home maintenance would be an office expense.  

If you go out for a business meeting, it has to be a normal and usual business expense. Stretching it and saying, “I want to go to this fancy restaurant and I’ll mention my business so I’m going to take a tax deduction.” No. But, if you go out for an actual business meeting, now that restaurants are starting to re-open, that would be a usual business expense. You would need to note which client you went to meet with. If you ate lunch in your office, that, unfortunately, would not be a business expense, as you would have to eat lunch anyway. But if you bought lunch for your employees to eat in the office, that would certainly be a business expense.

Interest on business loans and the like should be tracked as a business expense.

Track anything you think might be a business expense and then run it by your CPA at the end of the year. He or she will let you know what you can or cannot deduct.

Feel free to reply and ask me any questions you might have on this subject!

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Maya Weinreb | Founder & CEO
813-336-1574

Frequently Asked Questions

What business deductions do owners often miss?

Many business owners overlook deductions for common expenses such as home office costs, business meals, loan interest, software, supplies, and other expenses related to operating their business. Keeping detailed records helps ensure potential deductions are not missed.

Can I deduct a home office if I work from home?

Yes. A home office may qualify for a deduction if it is used regularly and exclusively for business purposes. The deduction is generally based on the percentage of your home used for business, such as square footage or qualifying space.

Are business meals tax deductible?

Business meals may be deductible when they are ordinary, necessary, and directly related to business activities. You should keep records showing the date, amount, purpose of the meeting, and the people involved.

Can I deduct meals I eat while working from my office?

Generally, personal meals are not deductible simply because you are working. However, certain meals provided for employees or qualifying business-related situations may be deductible depending on IRS rules.

Can I deduct interest on business loans?

Yes. Interest paid on qualifying business loans is generally a deductible business expense when the loan is used for business purposes. Proper documentation should be maintained to support the deduction.

How can I make sure I don’t miss business deductions?

Track all potential business expenses throughout the year and keep organized records, including receipts and explanations of business purpose. A CPA or tax professional can review expenses and determine which deductions qualify.