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Is It a Business Expense? The Ultimate 'Can I Deduct This?' Checklist

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Let's be real: figuring out what counts as a business expense can feel like solving a riddle. That random lunch with a client? The Wi-Fi bill you use for both Netflix and work emails? Your home office that doubles as a laundry staging area?

Here's the deal: if it's "ordinary and necessary" for your business, it's probably deductible. Translation: it's common in your industry and actually helps you make money.

The Quick-Check Deduction List

✅ Almost Always Deductible:

  • Home office (if you use a dedicated space exclusively for work)
  • Business mileage (track every trip: dates, miles, purpose)
  • Software and subscriptions (Canva, QuickBooks, scheduling tools)
  • Office supplies (printer ink, notebooks, pens)
  • Professional services (accountant, lawyer, web designer)
  • Business insurance (liability, errors & omissions)
  • Advertising and marketing (Facebook ads, flyers, business cards)
  • Licenses and permits (professional fees, business registration)

⚠️ Partially Deductible (Usually 50%):

  • Business meals (coffee with a client, lunch during a work trip)
  • Entertainment tied directly to business discussions

🚫 Not Deductible:

  • Personal meals (even if you think about work while eating)
  • Commuting from home to your main office
  • Clothes (unless they're uniforms or costumes you'd never wear outside work)

Small business owner organizing receipts and tracking business expenses

The Gray Zone: When to Ask

Here's where people get stuck:

  • Your phone bill? Deduct the percentage you use for business.
  • That Spotify subscription? Only if you're a DJ or use it for client-facing work.
  • Gym membership? Nope: unless you're a personal trainer and it's required for your business operations.

The IRS wants proof that the expense is helpful and appropriate for your specific business. If you're second-guessing it, that's your cue to document why it matters for your work.

Document Everything (Seriously)

Keep receipts for anything over $75. For mileage, use an app or old-school notebook to log dates, destinations, and business purposes. Mixed-use expenses (like your home internet) should have a clear calculation showing the business vs. personal split.

Still Not Sure?

Look, tax code isn't designed to be fun reading. If you're staring at a receipt wondering "does this count?", that's where I come in. Let's go through your expenses together and make sure you're claiming everything you're entitled to: without the stress of wondering if you did it right.

Book a consultation and we'll sort through what's deductible, what's not, and what falls in that annoying gray area. No judgment, just answers.

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