If you create a successful business, paying taxes is inevitable. But it can be a lot less painful if you use the tax code to your advantage and maximize your business’s tax deductions. Bookmark this business expenses list and utilize as many tax write-offs as you can to save money for your hard work.
Running a business is a lot of fun until the tax man comes beating down your door. It can feel like the government just shot a rocket launcher through your beautiful new office with grenades going off everywhere like fireworks.
And while you stand there in shock, your eyes can’t help but bulge out at the suction vacuum hose they’ve attached to your now shrinking bank account.
Common Business Expenses
Every business is different, but there are a lot of common expenses that can be written off across almost any company size and industry. Be aware that larger company costs like equipment, start-up costs, assets, and improvements are typically capitalized instead of deducted.
Also, certain expenses are not 100% deductible if they are partially used for personal use. In those cases, you have to calculate and track the amount of business versus personal use, and only deduct the percentage of business use.
Keep in mind if your business is purchasing items for resale or manufacturing products, you have to track the value of your inventory at the start and finish of each tax year as well.
This determines the cost of goods sold. The IRS doesn’t allow businesses to deduct expenses more than once, so you can’t deduct an expense a second time if you already included it in cost of goods sold.
Before filing your tax returns, always check with a certified accountant on the proper treatments for all the costs incurred for your particular business!
If you’re like me and don’t have a CPA, I recommend hiring a CPA to help you minimize your tax liabilities. Tax rules and limits change all the time, and every state also has its own rules and quirks.
Helpful Business Expenses List
I’ve structured this business expenses list by categories since there are quite a lot of them. Just because there are a lot of things your business can deduct, don’t forget your budget.
Definitely don’t build massive debt and spend beyond your means. And always keep your receipts and bank statements in your corporate records. Now it’s time to have fun reading this huge and helpful business expenses list.
Advertising, Marketing, Sales
- Print ads, classified ads, online banner ads, billboards, commercials
- Logos, graphic design fees, Adwords
- Prizes, giveaways, sponsorships
- Posters, mailers, postcards, email marketing fees, stock photos
- Postage, stamps, shipping materials, tracking and insurance fees
- Client meals, gift baskets, promotional products
- Paid surveys, focus group fees, research costs
- Photo shoots, photo development, printing and binding costs
Travel
- Backpacks, luggage, bags, totes
- Airfare, train tickets, bus fare, hotel stays, taxis, car service, tips
- Travel meals, wifi charges, amenity fees, hotel taxes, airport fees, phone charges, laundry charges
- Visa expenses, passport photos, passport fees, currency exchange fees
- Car rentals, vehicle leases, gasoline, repairs, mileage, tolls, parking, GPS
Insurance
- Car insurance
- Travel insurance
- Health, dental, vision insurance
- Workers compensation insurance
- Life, disability insurance
- Unemployment insurance
- Business insurance
- Renters insurance
- Property, theft insurance
- Flood, Fire insurance
Employees
- Job postings, recruiting costs
- Salaries, bonuses, other compensation
- Retirement plans such as SEP IRAs, 401ks, pensions
- Education and training expenses, textbooks, materials
- Employer payroll taxes
- Disability benefits, sick pay, vacation pay
- Employee gifts ($25/person per year), recognition awards
- Holiday parties, corporate events, department outings
- Moving expenses
- Contract labor, freelancers, paid interns
- Profit sharing, benefits
- Business meals (only 50%)
- Physical therapy, ergonomic assessments and supplies
- Eye drops, pain killers, energy supplements
Utilities, Rents, Leases
- Electricity, gas, water, garbage, heat, cooling
- Cable TV, internet, land lines, cell phone service, phone cards
- Office rent, equipment rental
- Venue rental costs
- Repairs, maintenance
Taxes, Fees, Subscriptions
- Legal fees, retainers, incorporation fees
- Bookkeeping, payroll service, tax prep, accountancy fees
- Consultant, professional fees
- Trademark, copyright fees
- Banking, Paypal, credit card fees
- Interest on loans, debt losses
- Business licenses, registration fees
- State and local taxes
- Charitable contributions
- Conferences, convention fees, seminars, trade shows, webinars
- Commissions
- Delivery fees
- Factory expenses
- Domain registration fees, hosting, web developer fees
- Merchant, credit card processing fees
- Professional association dues
- Library fees
- Teleconferencing fees
- Post office box, storage fees
- Net operating losses
Office Supplies
- Paper, stationery, envelopes, post-its, tags, labels
- Pens, pencils, markers, rulers
- Erasers, white out, glue, punches
- Staples, tape, binder clips, paper clips
- Notebooks, 3 ring binders, folders, dividers, organizers
- Business cards, index cards, card-stock, letter head
- Ink, toner, batteries, calendars, air cans
- First aid kits, safety supplies, candles, light bulbs, scissors
- Books, magazines, newspapers
- Software, online subscriptions
Office Equipment & Furniture
- Phones, headsets, cell phones, voice recorders, chargers, power strips
- USB cords, thumb drives, card readers, external hard drives
- Servers, routers, cables, switches, tools, hooks, clocks, cords
- Laptops, PCs, tablets, monitors, keyboards, mice, mousepads
- Projectors, screens, podiums, easels, laser pointers, calculators
- Printers, scanners, fax machines, postage machines, copier, shredder
- Chairs, desks, tables, lamps, bookcases, mats, stands
- Couches, decorative pillows, rugs, window shades
- Security systems, safes, video cameras, digital cameras, web cams
- Storage boxes, cabinets, bins, trash cans
- Fans, space heaters, air filters, thermometers
Break Room Supplies
- Paper cups, mugs, glasses, pitchers, plates, bowls, cutlery, stir sticks
- Microwave, toaster, fridge, coffee maker, filters, beverage dispensers
- Water, coffee, tea, milk, juices, soda
- Sugar, salt, honey, condiments, non dairy creamers
- Paper towels, sponges, dish detergent, cleaners, wipes, polish, mops
- Napkins, tissues, trash bags
- Anti bacterial gels, bandaids, pain relievers
- Candy, gum, snacks
- Serving trays, carts, baskets, disaster recovery kits
- Vacuums, dust cloths, flashlights, fire extinguishers
Untemplaters, have you been maximizing your tax write-offs to save money? Can you think of anything I missed in this business expenses list?
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Luckily my tuition is a tax write off, even though I don’t have a business at least I save some money in that respect. I can even carry it over if I don’t use all of it in one tax year.
Yes that’s the great benefit of being a student! Gotta take advantage of as many tax deductions as possible.
This is a very useful list. We’re trying to place into the business expenses as much as possible, especially since we’re already being taxed a lot.
Thanks dojo. Yeah it’s nice making money but the taxes sure creep up alongside it!
Fantastic list, I wasn’t aware that you could write off holiday gifts either. I’ll definitely be keeping this list handy in the event it’s needed.
The limit is super low though, but it’s enough to cover small things like company t-shirts or mugs. Gotta keep employee moral boosted!
You do have to be careful about home office deductions. The IRS is more stringent about these deductions than most. Anyone with a home office should read IRS Publication 587, “Business Use of Your Home.”
That’s correct because it’s one of the most abused deductions and larger items. In certain audit circumstances they can actually require you to show them your home office space to prove whether or not it fully qualifies.
There’s nothing quite like owning a business. Too bad there is the wasteful CA Franchise business fee of $860/year!
I’m hosting my semi annual board meeting in Hawaii this year. We’ll be talking good strategies for 2014!
Yeah that stupid Franchise Tax Board blows. It’s still $800 – I sure hope it doesn’t go up to $860!
This is a very helpful list. Tax time is coming up soon and even if your business is blogging, there’s a lot of expenses that can be written off, including some of the ones you’ve listed. I didn’t know you could write off holiday gifts.
Definitely. And it’s good to start thinking about all this stuff prior to the end of the year. If there’s something you’ve been thinking about purchasing for your business there’s still time to buy it in 2013 and take advantage of deductions into this tax year.
As a freelancer, this is a very good list for me to keep on hand… just in case.
Not that I NEVER claim my expenses, but it’s nice to know what counts.
Yep, there are lots of things that can be deducted when they are used for business purposes! Here’s hoping that the government doesn’t tighten the tax rules on deductible expenses any further.