When we review a prior-year return for a new client, the same deductions come up again and again. Each one is ordinary and defensible with the right documentation.
Home office
If a space in your home is used regularly and exclusively for business, a portion of rent or mortgage interest, utilities, and insurance is deductible. The simplified method is easy but often smaller than the actual expense calculation.
Business mileage
Driving to clients, suppliers, the bank, and job sites counts. Without a log, most owners guess low. A mileage app costs nothing and pays for itself in the first month.
Startup and organizational costs
Expenses paid before the business opened, including formation fees, research, and initial marketing, are deductible and frequently forgotten on the first return.
Retirement contributions
A SEP IRA or solo 401(k) lets a profitable owner shift a meaningful amount of income into retirement savings, often after the tax year has already ended.
Health insurance and professional fees
Self-employed health insurance premiums, continuing education, licenses, subscriptions, and the fee you pay your accountant are all deductible business expenses.