Expenses

No, groceries are not tax deductible.

Groceries are generally considered a personal living expense by the IRS and are not tax deductible under normal circumstances. This means that when you buy food for yourself or your family for regular personal consumption, you cannot claim it as a deduction on your tax return.

However, there are very limited exceptions to this rule. For example, if you purchase food for a business-related purpose, such as meals provided during a company meeting or food offered at a business event, those expenses may be partially deductible—typically at a 50% rate, and in some cases up to 100% depending on the specific context and IRS rules.

It’s important to distinguish between personal groceries and food purchased for business or medical reasons, as each category has different tax implications.

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Table of Contents

List of Expenses that are typically Tax Deductibles

This is a list of expenses that are typically deductible business expenses for small businesses and startups…

Expense Category Examples
Office Supplies Pens, paper, staplers, printer ink, business cards
Equipment Computers, printers, office furniture, machinery
Travel Airfare, hotels, rental cars, meals during business trips
Vehicle Expenses Mileage, fuel, maintenance, parking fees
Home Office  Portion of rent/mortgage, utilities, insurance
Professional Services Legal fees, accounting services, consulting
Marketing and Advertising Online ads, billboards, promotional materials
Insurance Business liability, health insurance for employees
Meals and Entertainment Client dinners, office parties (50% deductible)
Education and Training Courses, workshops, conferences related to business
Rent Office space, equipment rentals
Utilities Electricity, water, internet, phone services
Employee Salaries Wages, bonuses, benefits
Software and Subscriptions Accounting software, industry-specific tools
Startup Costs Market research, product development, business formation fees
Interest and Bank Fees Business loan interest, credit card fees
Depreciation Write-offs for long-term assets
Bad Debt Uncollectible invoices from customers
Taxes and Licenses Business licenses, permits, property taxes
Repairs and Maintenance Office repairs, equipment maintenance

Common Tax Deductible Questions we often get asked:

  • Is Business/Office Rent Tax Deductible?
    • Yes
  • Are Groceries Tax Deductible for Business?
    • No
  • Are Late Fees Tax Deductible for Businesses?
    • Yes
  • Is Office Space Tax Deductible?
    • Yes

List of Non-Deductible Expenses

See our list of non-deductible business expenses

Category Non-Deductible Expenses
Personal Personal clothing, residential landline telephone, commuting costs…
Entertainment Client entertainment (e.g., concerts, sporting events)…
Travel Expenses for accompanying guests on business trips…
Legal & Fines Penalties, traffic tickets, fines imposed by government agencies…
Political Lobbying expenses, political contributions, campaign expenses…
Insurance Life or disability insurance premiums (if the business is the beneficiary)…
Commuting Daily travel between home and workplace…
Luxury Items Extravagant purchases not essential for business operations…
Home Office Mortgage payments, property taxes (unless meeting specific criteria)…
Miscellaneous Volunteer hours, personal hobbies, expenses for activities without profit motive…
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A business loan is a type of financing that provides companies with funds to support operations, expansion, or other financial needs. It can come from banks, credit unions, or alternative lenders and may be secured or unsecured, depending on creditworthiness and collateral. Businesses repay the loan with interest over a set period, and terms vary based on factors such as the loan amount, business history, and financial health. Proper use of a business loan can help improve cash flow, fund growth, or cover unexpected expenses.

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