Expenses
List of IRS Deductible Business Expenses
Table of Contents
- Expenses that are typically Tax Deductibles
- Common Tax Deductible Questions
- Non-Deductible Expenses
- Is Business/Office Rent Tax Deductible?
- Are Groceries Tax Deductible for Business?
- Are Late Fees Tax Deductible for Businesses?
- Is Office Space Tax Deductible?
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
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… |
What is a business loan?
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.