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Maximizing Small Business Deductions: What You Can Write Off—and How to Stay Compliant

For small business owners, knowing which expenses are deductible is one of the most effective ways to reduce taxable income and boost profitability. Still, many owners miss out on legitimate deductions or fail to document them properly—mistakes that can lead to paying more in taxes than necessary or facing challenges during an audit. With the right strategy and solid bookkeeping, you can confidently claim every deduction you’re entitled to.

Home Office Deduction

With more business owners working remotely, the home office deduction has become increasingly valuable. If you use a dedicated space in your home exclusively and regularly for business, you may be able to deduct a portion of expenses such as rent, utilities, insurance, and repairs.
The IRS offers two options:

  • Simplified method: A flat $5 per square foot, up to 300 square feet.

  • Actual-expense method: Potentially larger deductions, but requires detailed recordkeeping.

Vehicle and Mileage Expenses

If you use your vehicle for business, you can deduct either the standard mileage rate or actual expenses like gas, insurance, repairs, and depreciation. To qualify, you must keep consistent mileage logs noting dates, destinations, and business purposes.
Remember: commuting to and from your regular workplace is not deductible, but trips for client meetings, project sites, or business errands generally are.

Meals and Travel

Business meals are typically 50% deductible, as long as they are business-related and properly documented—including who you met with and why.
Travel expenses such as airfare, lodging, rental cars, and certain incidental costs are deductible when the trip is primarily for business. Keeping detailed receipts and agendas helps support these deductions if the IRS asks for proof.

Depreciation and Equipment Deductions

Tax incentives like Section 179 and bonus depreciation allow businesses to deduct the full cost of qualifying equipment, software, vehicles, and certain improvements in the year they are placed in service. For businesses investing in growth, these deductions can meaningfully lower taxable income.
However, accurate tracking of asset purchases and usage is critical to remain compliant.

Retirement Plan Contributions

Setting up a retirement plan not only supports long-term savings goals but also creates a tax deduction for the business. Popular options include SEP IRAs, SIMPLE IRAs, and Solo 401(k)s, each with different contribution limits and requirements. The right plan depends on your business structure and whether you have employees.

Recordkeeping Matters

While the IRS doesn’t require specialized software, your records must be organized and complete. Keep receipts, invoices, bank and credit card statements, and mileage logs accessible. Strong bookkeeping practices ensure you maximize deductions and reduce the likelihood of IRS scrutiny.

Final Thoughts

Many small business owners leave money on the table simply because they’re unsure what qualifies as a deductible expense—or they lack the documentation to support it. Reviewing expenses throughout the year, rather than waiting until tax season, helps ensure you capture every possible deduction. Paired with guidance from a trusted accountant, a proactive approach keeps your business compliant and minimizes your tax burden.

Don’t leave valuable deductions on the table. Connect with Accavallo & Company today to ensure your business is maximizing every opportunity.

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CHRISTINA IMPERIOLI

Supervisor, CPA

Christina Imperioli is a Supervisor at Accavallo & Company, LLC, where she specializes in the preparation and review of individual and business tax returns across a variety of industries. With a focus on accuracy, client service, and technical expertise, she plays a key role in helping clients navigate complex tax matters.

She began her career as a Staff Accountant at The Innovative CPA Group, quickly rising through the ranks to Senior Accountant and ultimately Supervisor, demonstrating a strong commitment to professional growth and leadership.

Christina is a Certified Public Accountant and an active member of both the Connecticut Society of CPAs (CTCPA) and the American Institute of Certified Public Accountants (AICPA). She holds a Bachelor of Business Administration in Financial Accounting from Western Connecticut State University.

Throughout her career, she has worked with clients in the real estate, construction, and retail sectors, bringing valuable insight and industry-specific knowledge to every engagement.

Outside of work, she enjoys traveling with her husband and son, spending time with her three dogs—two rescues named Cole and Indigo, and a Brussels Griffon named Louie—and exploring local bookstores. Christina is a passionate reader and podcast enthusiast, she often listens to new episodes during her daily commute.

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Sherri Fisher is a Tax Manager at Accavallo & Company, LLC.  Sherri has longstanding expertise in Trust and Estate Taxation, Eldercare, and Estate planning. Sherri appreciates the relationships she has built with estate planning attorneys and advisors, to provide a team approach to assisting her clients. Sherri also has seasoned experience in business and individual taxation and is partial to assisting start-ups in developing overall accounting and operating plans.

Prior to joining Accavallo & Company, LLC, Sherri was a manager in a large firm, servicing high net worth trust clients, business, and personal clients. She was also a Partner in a large bookkeeping firm, which specialized in cloud accounting systems for regional and national companies. Sherri led a team in assisting clients to organize their accounting systems.  She is a graduate of Florida Atlantic University with a B.S. degree in Accounting.    

Sherri’s experience includes working with companies and organizations in a variety of industries including:

  • Investment Trusts

  • DAPT and Family Investment Partnerships

  • Estate and Probate Administration

  • E-Commerce

  • Manufacturing

  • Construction

  • Real Estate Investment

  • Marketing and Service-based industries

In addition to her professional accomplishments, Sherri is an Intuit Advanced Pro Advisor, Intuit Future Firm Advisory Board member, member of the Valley WIN Network, and proudly served as past Connecticut Public School liaison for the Yale Tommy Fund for Childhood Cancer. Sherri enjoys time with her family, Cleveland sports, thrifting and gardening.