Can You Write That Off? A Simple Guide to Common Deductible and Non-Deductible Expenses

Small business owners love the idea of tax write-offs. The problem is, nobody teaches you what actually qualifies as a business expense — and what the IRS will happily deny.

If you’ve ever wondered “Can I write this off,” this guide breaks it down in plain English so you know what counts, what doesn’t, and how to avoid red-flag spending.

What Makes Something Deductible?

The IRS has a simple rule:
Your expense must be ordinary and necessary for your business.

“Ordinary” means other businesses like yours commonly use it.
“Necessary” means you need it to operate or grow your business.

Think of it like this
If the expense helps you generate income, it probably counts.

Common Deductible Expenses

Below are everyday items most small business owners can safely deduct as long as they keep records and use them for business.

1. Office Supplies and Tools

Notebooks, pens, printers, ink, monitors, chargers, and anything you need to run your office.

2. Software and Apps

QuickBooks, Canva, Zoom, Google Workspace, CRM tools, project management apps.

3. Marketing and Advertising

Your website, hosting fees, business cards, ads, photoshoots, social media promotions.

4. Business Meals

Meals with clients or prospects. Deductible at 50 percent.
Keep the receipt and record who you met with.

5. Home Office Expenses

If you work from home and use your space exclusively for business, you may deduct part of your rent or mortgage, utilities, repairs, and internet.

6. Mileage and Vehicle Use

Driving to clients or meetings, running business errands, or traveling between job sites.
Use the IRS standard mileage rate or track actual expenses.

7. Professional Services

Bookkeepers, accountants, attorneys, consultants, graphic designers.
If you pay someone to help your business run smoothly, it usually counts.

8. Education and Training

Courses, CE hours, workshops, coaching, and certifications related to your current business.

9. Business Insurance

General liability coverage, E&O insurance, cyber protection, and similar policies.

10. Phone and Internet

You can deduct the business-use percentage of your phone and home internet plan.

Common Non-Deductible Expenses

These are the items business owners often try to write off, but the IRS says no.

1. Personal Expenses Disguised as Business

If it benefits you personally, not your business, it won’t qualify, even if you use your business card.
Examples

  • Personal clothing

  • Family vacations

  • Personal groceries

2. Commuting to Your Regular Workplace

Driving from home to your office or shop is personal commuting, not business mileage.

3. Meals Without a Business Purpose

If it’s just you grabbing Chick-fil-A alone, it’s not deductible.

4. Entertainment Expenses

Concerts, sporting events, and recreational outings do not qualify unless they meet strict criteria.

5. Personal Gym Memberships

Unless you’re a fitness trainer or wellness professional, this won’t qualify.

The Gray Area: Sometimes Deductible, Sometimes Not

Tax rules are rarely black and white. Some expenses depend on documentation, use, or intention.

1. Clothing

Only deductible if it is protective or required for your business and not suitable for everyday wear.
Example: Hard hats for contractors.
Not deductible: A blazer you wear to client meetings.

2. Travel

Business travel is deductible, but personal travel bundled into the same trip is not.
Track each day as business or personal.

3. Meals While Traveling

Deductible at 50 percent as long as the trip is mainly for business.

How to Know for Sure: Use This Simple Test

If you’re unsure about an expense, ask yourself three questions:

  1. Does this help me operate or grow my business?

  2. Would another business in my industry consider this normal?

  3. Can I clearly explain it to the IRS if they ask?

If you can say yes to all three, it’s probably deductible.

Keep Records or Lose the Deduction

Even legitimate deductions can be denied if you can’t prove them.
Always keep:

  • Receipts

  • Mileage logs

  • Notes about meetings

  • Invoices

  • Bank statements

Good bookkeeping is what makes tax deductions safe, clean, and stress-free.

Final Thoughts

Most small business owners miss deductions not because they don't qualify, but because they don't know what to look for or forget to document everything.

Clean books make write-offs effortless. Messy books leave money on the table.

If you’re unsure what you can and can’t write off, Red Leaf Bookkeeping can help you stay tax-ready all year.

👉 Book a Money Clarity Call and get your books set up the right way.

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