As a small business owner, you may be missing out on valuable tax deductions that could significantly reduce your tax bill. By identifying and leveraging deductible expenses, you can lower your taxable income and keep more money in your business.
In this guide, we’ll walk through 6 often-overlooked business tax deductions and show you how to make the most of them in 2024.
1. Home Office Deduction: Maximize Remote Work Savings
If you run your business from home, you may qualify for a home office tax deduction, allowing you to write off part of your rent, utilities, internet, and insurance.
Eligible Expenses:
Rent or mortgage interest Utilities, internet, home insurance Security systems
Example:
If your home office takes up 10% of your home, you can deduct 10% of those expenses.
💡 To qualify, your home office must be used exclusively for business and be your primary place of work.
2. Section 179 Deduction: Write Off Equipment in One Year
Section 179 allows you to deduct the full cost of equipment or software in the year you buy it — up to $1.16 million in 2024.
Eligible Items:
- Office equipment & computers
- Software subscriptions
- Business vehicles
- Commercial property improvements
Important: You must have net income to use Section 179. If your business runs at a loss, you’ll need to depreciate the asset over time.
💡 Tip: Use this in profitable years, and combine with bonus depreciation when needed.
3. Business Meals & Travel: Know What You Can Deduct
Deductible Expenses:
- 50%: Client meals, business lunches
- 100%: Employee meals during travel, airfare, lodging, rideshare
💡 Keep receipts and note the business purpose to stay IRS-compliant.
4. Mileage Deduction: Track Your Miles & Save
If you use a personal vehicle for business, you can deduct 65.5 cents per mile in 2024.
Example:
Drive 1,000 miles → deduct $655
💡 Use apps like MileIQ or QuickBooks Mileage to track automatically.
5. QBI Deduction: Take 20% Off Your Income — Before It Expires
The Qualified Business Income (QBI) Deduction allows eligible business owners to deduct up to 20% of their net income — with no extra spending required.
Applies to:
- Sole proprietors
- Partnerships
- LLCs
- S-Corps (within IRS income limits)
The QBI deduction is part of the 2017 Tax Cuts and Jobs Act and is currently scheduled to expire after December 31, 2025. If it’s not extended by Congress, 2024 and 2025 may be your last chance to take full advantage of this tax break.
💡 This is one of the most generous tax deductions available to small businesses — don’t miss it!
6. Common Everyday Business Expenses (That Are Fully Deductible)
Many small business owners forget to deduct everyday tools and services that keep their business running.
Fully Deductible Examples:
- QuickBooks, Zoom, Adobe, Canva Pro
- Email marketing software (MailerLite, ConvertKit)
- Office supplies, internet, and phone bills
- Business insurance, accounting, legal, and marketing fees
💡 If it supports your business, it’s probably deductible.
Want to Make Sure You’re Not Overpaying?
At Ivy Tax & Business, we specialize in helping small business owners minimize taxes and stay compliant — without missing valuable deductions.
📅 Schedule your FREE Discovery call today
📞 Phone: 516-344-8065 / 718-801-8060
📧 Email: [email protected]
🌐 Website: ivycpatax.com
Disclaimer
This article is for educational purposes only and does not constitute legal or tax advice. Please consult a licensed tax professional before making financial decisions.
