Summary of What This Blog Covers:
- Discover seven commonly missed business tax deductions that can significantly lower your tax bill: From home office deductions to software subscriptions, this blog walks through practical write-offs that entrepreneurs often overlook. Each with specific IRS rules and how to track them properly.
- Learn how proper documentation and form filing protect your deductions: You’ll understand why forms like the W9, 1099 NEC, 1099K, and FBAR are essential to stay compliant and support every deduction you take—especially if you work with contractors or handle international funds.
- Understand the financial impact of missed deductions on self-employment tax and audit risk: This guide explains how failing to deduct legitimate expenses increases both income tax and self-employment tax, and why inconsistent reporting may trigger an IRS audit.
- See how Insogna CPA helps service business owners optimize deductions and tax planning year-round: As a leading CPA firm in Austin, Texas, Insogna CPA provides strategic support, from identifying deductions to filing all required tax forms, ensuring clients reduce tax liability while staying compliant.
Tired of Overpaying on Taxes? Let’s Fix That.
You and I both know that you didn’t start your business so you could become an expert in tax law. You started because you’re good at what you do. You serve your clients, solve real problems, and provide value every day.
But here’s the hard truth: you might be giving the IRS more than you legally have to.
And not because you’re doing anything wrong. But because like most business owners, you’re too busy running your business to dig through every tax code nuance or hunt down every deduction.
That’s where we come in.
At Insogna CPA, a highly-rated CPA firm in Austin, Texas, we help entrepreneurs like you find and claim the deductions they’re missing and turn tax season from a pain point into a strategic advantage.
If you’ve ever Googled “tax preparer near me” or “Austin small business accountant” and felt overwhelmed by options, don’t worry. This guide is going to walk you through seven overlooked tax deductions, why they matter, and how we help you track and maximize every last one.
What’s a Business Tax Deduction And Why Should You Care?
A business tax deduction reduces the amount of income you have to pay tax on. It’s that simple.
If your business earns $150,000 and you have $50,000 in deductible expenses, you’re only taxed on $100,000. That’s less tax paid, more money kept, and less stress next April.
The IRS requires that deductions be “ordinary and necessary” for your business. That means the expense should be common for your industry and directly connected to running your business.
Don’t worry, we help interpret what that means in real life. And trust us, the IRS isn’t going to remind you what you forgot to deduct. That’s our job.
1. Home Office Deduction
You Work From Home? Let’s Deduct It Properly.
This one causes confusion because it’s so often misused. But when done right, it’s a legitimate way to save.
What Qualifies:
- A designated area used exclusively and regularly for business
- A home office that’s your primary place of business, or where you meet clients
- A workspace used for admin or management tasks if your main work happens elsewhere
Deduction Options:
- Simplified method: $5 per square foot, up to 300 square feet
- Actual expense method: Deduct a percentage of your mortgage/rent, utilities, property taxes, and insurance
Common mistake: Trying to deduct your whole house. The IRS is not a fan of that.
How We Help:
As your Austin, TX accountant, we evaluate your space and usage, calculate the most advantageous method, and ensure everything is cleanly documented to avoid red flags.
2. Inventory Obsolescence Write-Offs
Got Dead Stock? Turn It Into a Deduction.
If you sell products, your inventory isn’t just an asset, it’s a potential tax deduction when it goes obsolete.
What’s Deductible:
- Unsellable or expired merchandise
- Inventory damaged beyond repair
- Obsolete goods that can’t be sold at full value
Requirements:
- Accurate records of cost, valuation, and write-off timing
- Clear evidence that the items no longer hold fair market value
Pro Tip: Don’t just toss inventory. Document the value drop, and record the disposal if applicable.
How We Help:
We help you determine when and how to record the write-off, and how to apply it against your income to reduce your self-employment tax liability.
3. Marketing & Advertising
Growth Isn’t Free And It’s Deductible.
If you’re not writing off your marketing costs, you’re giving up one of the easiest and most IRS-approved deductions out there.
Deductible Marketing Costs:
- Facebook, Instagram, LinkedIn, and Google Ads
- Website design, branding, logo work
- CRM tools like HubSpot or Salesforce
- SEO services and digital content production
- Print materials, signage, and promotional swag
Even the monthly Canva Pro fee counts.
How We Help:
As your tax advisor near you, we’ll help you categorize these expenses correctly in your chart of accounts, track recurring charges, and separate what’s promotional from personal.
4. Business Equipment & Depreciation
Bought Big-Ticket Items? Let’s Deduct Them Properly.
When you invest in equipment: computers, cameras, office furniture, you have options for how you deduct those costs.
Your Two Main Paths:
- Standard Depreciation: Deduct the cost over multiple years
- Section 179: Deduct the full cost in the year it’s placed in service (up to a limit)
Deductible Items:
- Office equipment and furniture
- Laptops, tablets, and work phones
- Business-use vehicles (with caveats)
- Leasehold improvements and commercial build-outs
Confused about Section 179 vs. bonus depreciation? We’ll show you the side-by-side.
How We Help:
We analyze which method will save you more based on your income, growth goals, and tax bracket and ensure it’s properly documented in your return.
5. Health Insurance Premiums for Self-Employed
Yes, You Can Deduct This If You Know the Rules.
If you’re self-employed and paying for your own health insurance, it may be 100% deductible—provided you meet the criteria.
What’s Covered:
- Health, dental, and vision insurance premiums
- Long-term care insurance
- Plans covering yourself, your spouse, and dependents
Catch: If your spouse’s employer offers you coverage, you can’t claim your own.
How We Help:
As a licensed CPA in Austin, Texas, we integrate health insurance deductions into your overall tax plan and explore whether a health savings account (HSA) or defined benefit plan could boost your savings further.
6. Business Travel & Meals
That Coffee with a Client? It Might Be Deductible.
This deduction is often misunderstood but extremely valuable when done right.
Deductible:
- Flights, hotels, rental cars, and rideshare to client sites or events
- Meals while traveling for business (50% deductible)
- Client dinners or team meals (with documentation)
Not Deductible:
- Meals on personal errands
- Spouse travel (unless they’re an employee)
- Entertainment expenses (the IRS nixed those in 2018)
How We Help:
We set up clean categories in your bookkeeping software (like QuickBooks Self-Employed) to separate personal and business travel, and show you how to meet the IRS’s documentation requirements.
7. Software & Subscriptions
Monthly Fees Are Sneaky But Deductible
From task managers to finance tools, those recurring charges are tax deductions waiting to happen.
Commonly Missed Deductions:
- QuickBooks Self-Employed, FreshBooks, Xero
- Zoom, Slack, Dropbox
- Canva, Trello, Asana, ClickUp
- Adobe Creative Cloud, design tools
- Any cloud-based software used for your business
That $15/month adds up to $180/year. Across 6–8 platforms? That’s a real tax break.
How We Help:
As your certified public accountant near you, we help track and tally these expenses automatically, so nothing gets left out of your year-end deductions.
Bonus: Forms You Can’t Afford to Ignore
Every deduction you claim must be backed by clean, accurate filings.
Critical Forms:
- W9 Form: You need this before paying a contractor
- 1099 NEC: Must be sent to any contractor earning $600+
- 1099K: You’ll get this if payment processors (like PayPal, Stripe, Square) pay you more than $600
- FBAR Filing (FinCEN Form 114): Required if your foreign accounts exceed $10,000 total during the year
Miss a form or file late? Penalties range from $50 to $10,000+ per violation.
Our certified CPAs and enrolled agents prepare and file these forms accurately and handle FBAR filing if needed.
What Happens If You Miss These Deductions?
When you skip legitimate business deductions:
- You pay more income tax than necessary
- You increase your self-employment tax burden
- You may trigger an audit due to inconsistent reporting
And worst of all, you lose money that could’ve been reinvested into your business, your retirement, or your peace of mind.
That’s why working with a proactive, detail-obsessed CPA firm in Austin, Texas (that’s us) makes all the difference.
What We Do at Insogna CPA
When you work with us, you get more than tax prep. You get:
- Year-round tax planning strategy
- Deductions customized to your business model
- Clean, IRS-compliant documentation
- Expert handling of W9 tax forms, 1099 NEC forms, 1099K income, and FBARs
- Support from a full team of certified professional accountants, chartered public accountants, and Austin tax accountants
Whether you’re looking for a tax professional near you, searching for CPA firms in Austin, Texas, or ready to work with a licensed CPA who actually understands your world, we’re here.
Final Thoughts: You Work Too Hard to Give Away Tax Money
Every dollar you don’t deduct is money you’re donating to the IRS.
But when you partner with a strategic, experienced Austin accounting service like Insogna CPA, you gain more than compliance. You gain confidence.
Schedule Your Tax Planning Session Today
Let’s make this the year you stop leaving money on the table.
Book your consultation with Insogna CPA now and let’s review your deductions, optimize your filings, and build a tax plan that works as hard as you do.
Because when your tax plan is aligned with your growth, everything gets easier.