The clock is ticking, tax season looms, and suddenly you realize—could all those business lunches, office supplies, and even that podcast mic you splurged on actually save you money?

Tax experts at doola say it’s absolutely possible. 

That’s the miracle of tax write-offs—what feels like an expense could actually be your savings. 

We understand, taxes aren’t the most thrilling part of being a business owner. 

To make this tax write-off narrative an easier ride, we will share the story of Jane, a business owner, who partnered with doola and saved a fortune on tax deductions. 

We could be writing your story next. 

With doola’s tailored solutions from LLC formation to  bookkeeping services and tax compliance, business owners like you maximize every single dollar you can save. 

Ready to uncover 18 tax write-offs that helped Jane level up her tax game? 

Let’s doola it!

What Is a Tax Deduction?

A tax deduction, often called a “tax write-off,” is the secret key to lowering your tax bill. 

Simply put, it’s an expense you can subtract from your taxable income, which means you’ll owe less in taxes. 

For example, if you earned $50,000 but have $10,000 in deductible expenses, you’ll only be taxed on $40,000 of income.

Of course, not just any expense will do. 

For something to qualify as a tax deduction, it has to meet the Internal Revenue Service (IRS) guidelines. 

This means the expense should be “ordinary and necessary” for running your business.

We’ve rounded up a comprehensive list of common tax write-offs available to self-employed business owners, whether you’re operating as a sole proprietorship or a partnership. 

Some of these deductions are business-focused, while others are more personal, but all are designed to help keep more of your hard-earned money in your pocket. 

Jane’s doola Story: Tax Overload to Smart Savings

One of the easiest ways to shrink your tax bill is by making sure you’re tapping into every tax deduction your small business qualifies for. 

Just like Jane did with a little help from doola. Let’s take a quick peek at her tax win.

A self-employed graphic designer and creator, Jane raked in $70,000 in income during 2023. 

She was supposed to pay a 15.3% self-employment (SE) tax on her earnings, plus income tax at her individual rate. 

The SE tax on $70,000 was $9,853 (because only 92.35% of SE income is taxable), and her income tax was another $6,200, bringing her total tax bill to $16,053.

Note: Jane’s only taxable income comes from her design business.

Around mid-2023, Jane teamed up with doola, and her bookkeeper uncovered $8,000 in deductible business expenses that Jane had totally missed. 

This included contractor fees, software subscriptions, and that fancy new monitor she absolutely needed for her design work. 

Suddenly, her taxable self-employment income dropped to $62,000.

And, Jane’s tax bill dropped: She paid $8,720 in SE tax and $5,580 in income tax, for a new total of $14,300.

Those extra deductions just saved Jane over $1,700! 

Just enough to splurge on that ergonomic office chair she’d been eyeing!

By digging into all her eligible deductions, Jane managed to slice her tax bill by over $1,700—and that was just the beginning! 

With doola’s tools and support, she started to save more and reinvested the money straight back into her business.

Tax Wins with doola: Spotlight on Deductions

How many of us remember that business lunch we paid for last summer? 

That’s a question we asked Jane. 

And we get it. For founders donning a hundred hats, it’s easy to overlook business expenses, especially when they pop up throughout the year. 

But here’s the thing.

Every forgotten business expense is a tax write-off you miss.

With doola in her corner, Jane learned firsthand how those forgotten write-offs can seriously add up—and how missing them means missing out on big tax savings.

Thanks to doola, Jane no longer worries about missed deductions. 

With ongoing monthly bookkeeping, everything is caught as it happens—so by tax time, she’s confident nothing’s slipping through the cracks. 

And the best part? 

When tax season rolls around, Jane can kick back while doola handles both her bookkeeping and filing. 

Top 18 Tax Write-Offs for Businesses

💰 1. Business Insurance Deductions

Post consultation with doola’s experts, Jane realized that the insurance premiums she paid were also tax-deductible.

Here’s a quick look at the types of business insurance you can write off:

• Property Protection: Cover your furniture, equipment, and buildings.

• Employee Benefits: Offer health, dental, and vision insurance to your team.

• Worker’s Compensation: Ensure your employees are covered in case of injuries.

• Liability Coverage: Protect yourself from lawsuits and claims.

• Professional Protection: Safeguard yourself against malpractice or errors.

• Vehicle Coverage: Protect your business vehicles.

• Business Interruption: Stay afloat even if your business takes a hit.

doola Tip

Talk to your insurance agent to determine the best coverage for your specific needs and to ensure you’re maximizing your tax deductions.

Based on the industry you operate in, you can select from a wide range of tailored insurance plans by NEXT Insurance.

💰 2. Hiring Contract Labor

Hiring freelancers and contractors can be a game-changer for your business. Not only do you get expert help, but you can also claim those expenses as tax deductions.

It’s a win-win!

Remember: If you pay a contractor $600 or more, you’ll need to send them a Form 1099-NEC.

doola Tip

Jane relied on doola’s bookkeeping and tax compliance services to keep her contractor expenses in check and ensure that her 1099 forms were filed on time.

Partner with us and stay on top of your contract labor expenses.

💰 3. Tax and License Write-Offs

Your business needs tax deductions to survive and thrive. Let’s explore some essential tax write-offs that can boost your bottom line.

Your Tax Deduction Checklist:

• State Income Taxes: Keep those state taxes in check with potential deductions.

• Payroll Taxes: Employing a team? Deductions can help ease the financial burden.

• Property Taxes: Own a business property? Claim those deductions.

• Sales and Excise Taxes: If you’re selling products or services, these taxes might be deductible.

• Fuel Taxes: Driving for business? Those fuel costs can be written off.

• Business Licenses: The fees for operating your business can often be deducted.

doola Tip

Stay organized with your tax records. Documenting these expenses is crucial for claiming deductions.

Let doola handle the operating agreements and other paperwork, so you can focus on running your business.

💰 4. Legal and Professional Expenses

Jane realized her lawyer consultations, accountant advice, and bookkeeping services were deductible, as long as they were tied to running her business.

Here’s how you can make the most of your legal and professional expenses too:

• Lawyer Fees: Deductible if directly related to business.

• Accountants and Tax Preparers: Deduct their fees as a business expense.

Important Tip: Jane learned that if she paid a lawyer or accountant for anything personal (like drafting her will), only the portion related to her business was deductible.

So she kept those receipts organized to make sure everything was properly written off.

doola Tip

If your legal or professional fees include personal matters, separate your finances for accurate deductions.

💰 5. Travel Cost Deductions

Your business trips could double as tax-saving opportunities.

So before you hop on a plane to meet clients, make sure you turn your business travels into smart write-offs.

Your Travel Tax Checklist:

• Transportation: Flights, trains, buses, or your own car – the costs can be written off.

• Lodging: Hotels, motels, or even Airbnb – your accommodations are tax-deductible.

• Meals and entertainment: Enjoy your trips with tax-deductible meals and entertainment expenses.

• Transportation while traveling: Parking, tolls, taxis – they all count.

• Baggage and samples: Shipping costs for business materials are deductible.
• Laundry and dry cleaning: Retain those laundry bills for deductions.

• Business calls and shipping: Sending samples to clients or making business calls – goes straight to your tax deduction bucket.

doola Tip

To qualify for tax deductions, your business travel must be:

• Essential: The trip must be necessary for conducting your business.

• Away from home: You must travel outside of your usual work area.

• Overnight Stay: If your trip is a day trip, you generally can’t deduct travel expenses.

Keep every record – dates, destinations, expenses, and even the business reasons for your travel.

With doola’s help, your books stayed tidy, and every deduction is locked in.

💰 6. Telephone and Internet Costs

From client calls to endless Zoom meetings, your phone and internet expenses qualify for deductions.

Here’s the breakdown:

• Landlines: If you have a dedicated business landline, the cost is deductible.

• Cell Phones: If you use your cell phone for business, you can deduct a portion of the cost based on your business usage.

• Internet: Internet bills are generally deductible if used for business purposes.

doola Tip

Always keep those itemized bills handy.

Jane made sure to document her usage, so when tax season rolled around, her business expenses were clear-cut.

With doola’s bookkeeping support, you can also track your phone and internet deductions—so you stay compliant and maximize your savings.

💰 7. Rent deductions

Every dollar paid in rent for your office space is fully deductible, reducing your taxable income.

Whether you are signing client contracts at your sleek new desk or collaborating in a rented conference room, every expense directly support your business.

That means they are fair game for a tax write-off.

Jane’s case was a bit unique. She knew the rules weren’t as simple when it came to her home.

Even though her living room had doubled as her office for months, she couldn’t lump her apartment rent in with her business expenses.

Instead, she learned that her home office expenses (like the portion of rent, utilities, and internet dedicated to her business) had to be handled by doola separately.

doola Tip

Keep accurate records of your rental payments to ensure you can claim these deductions.

💰 8. Bank fees

Every time your business bank charges you a monthly service fee or you have to pay a transfer fee to send money between accounts, the costs are deductible.

Even the small transaction fees from using payment processors like PayPal or Stripe are eligible for write-offs.

doola Tip

Always keep your personal and business bank accounts separate.

Let doola help you stay on top of your bank fees, so you don’t miss out on those sneaky little deductions that add up.

By keeping everything organized, doola ensures you’re only paying what you owe—and not a penny more.

💰 9. Moving Expenses

While personal moving expenses aren’t deductible, businesses can claim tax deductions for relocating their operations.

What’s Deductible:

• Equipment and Supplies: Moving your business’s tools and materials? The costs can be written off.

• Inventory: Relocating your inventory is a deductible expense.

doola Tip

Keep detailed records of all moving expenses, including receipts, invoices, and a mileage log.

Remember, these deductions can help offset the costs of relocating your business and streamline your operations.

💰 10. Employee Salaries and Benefits

If you hire employees who are on the payroll, doing real work, and receiving reasonable compensation—their salaries, perks, and even paid vacations qualify for tax savings.

doola Tip

You need to take stock of the following criteria:

• Employee Status: Ensure your employees are classified as employees, not independent contractors.

• Compensation: Pay a fair wage that reflects the value your employees bring to the business.

With doola’s bookkeeping and tax services, you can seamlessly track employee salaries, benefits, and other business expenses throughout the year, making it easier to claim your deductions.

💰 11. Business Meal deductions

Lunch meets with your clients or other business meals are great! But here’s the real treat.

You can deduct 50% of “qualifying” food and beverage costs. 

Now, what’s “qualifying”? Let’s find out.

• Business necessity: The meal must be directly related to your business.

• Reasonable expenses: Avoid extravagant feasts and limit it to a budget.

• Office parties: Meals provided at company events are 100% deductible.

• Company presence: You or your employees must be present at the meal.

Surprised? So was Jane when we told her those late-night pizzas she ordered for her team brainstorming sessions were 100% deductible!

doola Tip

Keep detailed records of your dining expenses, including receipts, dates, and the purpose of the meal—doola can help you track it all, ensuring you get every slice of that tax deduction pie!

💰 12. Vehicles for Business Use

When you hit the road to meet clients, pick up supplies, or scout locations for your next big project…

You’re earning tax deductions!

If your vehicle is used exclusively for business, you can deduct every penny spent on gas, oil changes, and repairs.

Two Roads to Tax Savings:

a. Standard Mileage Rate:

You multiply every mile driven by the standard mileage rate ($0.67 per mile).

So if you drive 1000 business miles, you can write off $670.

b. Actual Expense Method:

This approach lets you track everything—fuel, maintenance, insurance.

Multiply your total vehicle costs by the percentage of miles driven for business.

If half your miles are for business, you deduct half your total vehicle expenses.

doola Tip

Always maintain a proper mileage log. doola’s platform can help you get the biggest deduction possible on your total mileage.

Just remember—those miles to and from the office? They don’t count.

Business trips only!

💰 13. Depreciation

When you purchase assets for your business, you can’t deduct the full cost in one year.

That’s where depreciation comes in. It’s like spreading out the cost over the life of the asset.

But here’s the cool part: the IRS knows business owners love instant rewards, so they’ve come up with ways to deduct the full cost sooner.

What’s Deductible:

• Section 179 Deduction: Lets you deduct up to $1,080,000 for new or used business property.

• De Minimis Safe Harbor: For assets under $2,500, you can deduct the full cost in the year you buy them.

• Bonus Depreciation: Claim 100% of the cost for qualifying assets like machinery, equipment, and computers.

doola Tip

Consult an expert to understand the IRS limitations on passenger vehicle deductions.

doola’s bookkeeping and tax tools help you figure out which method gives you the biggest benefit, and keep track of it all with ease.

💰 14. Home Office Costs

If your home also doubles as your office, you’re in luck!

You may be eligible to deduct a portion of your housing expenses from your business income. There are two ways to tackle this deduction:

• Simplified Method: Claim a deduction of $5 per square foot of your home office (up to 300 square feet).

• Standard Method: Calculate your deduction based on the percentage of your home used for business.

Are there any criteria for deductions?

• Your home office must be your primary workspace, used exclusively for business.

• If you have multiple work locations, your home office should be where you spend the most time conducting business.

Note: If you opt for the standard method, don’t forget to file Form 8829 with your Schedule C.

doola Tip

Keep detailed records of your home office expenses, including square footage measurements and proof of business use.

This will help you justify your deductions if audited.

If you’re unsure which method benefits you more, doola’s bookkeeping services can help you sort through your options.

💰 15. Deduction on Interest Paid

When Jane needed extra funds to expand her business, she took out a loan and used her business credit card to cover her expenses.

With doola’s guidance, Jane learnt she could deduct the interest she paid on that loan and credit card—provided she followed the rules.

What are the rules?

a. You’re Legally Liable for the Debt

This means the loan is in your name.

For instance, if a family member takes out a second mortgage to help fund your business, and it’s in their name, you can’t deduct the interest, even if you’re making the payments.

b. A Real Loan, Not a Gift

Both you and the lender must expect that the debt will be repaid. If there’s no intention of repayment, the IRS will see it as a gift, not a loan, and the interest won’t be deductible.

c. Debtor/Creditor Relationship

The IRS pays close attention to loans between family members and friends.

It must be clear that both parties view this as a legitimate loan with the expectation of repayment.

Also, if you use the accrual method of accounting, you can only deduct the interest after it’s actually paid to the lender.

d. Only for Business Loans

If your loan is part business, part personal, you’ll need to split the interest and only deduct the portion related to business expenses.

doola Tip

doola’s bookkeeping services help you track and categorize your interest payments, so you get every deduction possible.

💰 16. Education Costs

Education expenses are 100% deductible if they directly enhance your business and build your expertise.

To gauge if your course/workshop qualifies, the IRS checks whether it helps improve the skills essential for your business.

What qualifies as valid business education expenses?

• Seminars, webinars or workshops to boost industry skills

• Subscriptions to trade or professional journals

• Travel expenses incurred while attending classes

• Books and tools relevant to your industry

Note: The costs don’t qualify for deductions if the education is for an entirely new career or ventures outside your current business field.

doola Tip

Make sure your education aligns with your business goals, and let doola help you track these deductible expenses so you can continue growing your skills—and your business—while keeping your finances in check!

💰 17. Advertisement and Promotion Costs

Advertising and promotion costs are fully deductible, which means you can keep more of your hard-earned money.

Here’s a breakdown of what you can deduct:

a. Branding and Design

Hiring a designer for a logo or creating marketing materials like business cards and brochures.

b. Digital Marketing

Purchasing online or print ad space, running social media campaigns, and launching a new website.

c. Client Outreach

Sending personalized cards to clients.

d. Community Engagement

Sponsoring events to build brand awareness and connect with the local community.

doola Tip

Save those receipts! Documenting your marketing expenses is crucial for claiming deductions.

💰 18. Personal Tax Deductions

If you’ve enjoyed Jane’s doola story so far, here’s one last tax lesson from her playbook.

While most of your business-related deductions go on Schedule C or Form 1065’s Schedule K-1, there are a few other tax breaks Jane wants you to explore.

a. Child and Dependent Care Expenses

If you’re paying someone to look after a child or dependent while you work, the Child and Dependent Care Credit could offer some relief.

Depending on your income, this credit can cover anywhere from 20% to 35% of your care expenses.

• For one dependent, you can claim up to $4,000 in care costs.

• For two or more dependents, the amount doubles to $8,000.

To claim this credit, just make sure to attach Form 2441 to your Form 1040.

b. Retirement Contributions

As a business owner, you can deduct the contributions to your employees’ retirement accounts as a legit business expense.

The amount depends on the type of retirement plan you’ve picked.

c. Charitable Donations

Charitable donations don’t count as a business expense.

However, you can still claim them on your personal tax return. Just make sure your donation goes to a qualified organization.

Post 2020, there has been more good news for business owners:

You can claim up to $300 in cash contributions as an “above-the-line” deduction on your Form 1040—no itemizing required!

If you want to deduct more than that, you’ll need to itemize your deductions on Schedule A.

d. Health Care Costs

Health care can be a money drain, but there’s a silver lining—you can turn those medical bills into tax savings!

When you itemize on Schedule A, you can deduct out-of-pocket costs like co-pays and prescriptions.

If you’re self-employed, you get an extra perk: you can deduct health insurance premiums for yourself, your spouse, and your dependents on Schedule 1 of Form 1040.

But heads up, if your spouse’s job offers health insurance, you can’t claim those premiums through your business.

Keep it legit and score those tax benefits where you can!

doola Tip

Staying organized with both your personal and business expenses is key to maximizing your deductions.

Keep detailed records of everything you can claim, and consult a tax professional if you need guidance on how to make the most of your tax breaks.

Save Smart with doola’s Services

Your tax saving opportunities are hiding in plain sight—but well within reach.

From travel expenses to charity, these smart savings help you keep more money in your pocket and invest it back into growing your business.

With doola as your partner, you can transform tax season from a living nightmare into a rewarding opportunity to maximize savings.

Our expert team can help you identify all eligible deductions, streamline your bookkeeping, and ensure you’re compliant with tax regulations.

Ready to save smart and join the big leagues?

Book a free consultation today.