Vantage
Reviewed by the Vantage Accounting Pros tax team · Nov 2026
Quick answer
Most businesses can deduct the ordinary and necessary costs of running the business: rent, software, wages, insurance, vehicle use, professional fees and equipment. The ones people miss are usually the home office, health insurance for owners, retirement contributions and small equipment. Keep receipts and a short note on the business purpose.
The everyday deductions
Rent, utilities, phone and internet, software, office supplies, advertising, insurance, bank fees and professional fees are generally deductible in the year you pay them.
Wages, payroll taxes and contractor payments are deductible too, as long as the right forms (W-2s and 1099s) are filed.
The ones people miss
A home office used regularly and only for business, the business share of a vehicle, health insurance premiums for self-employed owners, and contributions to a SEP-IRA, SIMPLE IRA or solo 401(k).
Equipment and furniture can often be written off in the first year instead of over several years.
What records to keep
Keep receipts, invoices and bank statements for at least three years after you file. For vehicles, keep a mileage log. For meals, note who attended and the business reason.
If your books are kept monthly, most of this is already done by the time tax season arrives.
This guide is general information, not advice for your situation. Talk to us about your numbers.