Hey there, eCommerce rockstar! Running your business is a hustle, and we see you putting in the work. But let’s talk about taxes—are you leaving money on the table? If you’re not taking advantage of every possible deduction, you might be handing over too much to the IRS.
At Insogna CPA, we work with eCommerce pros like you to make sure you’re keeping as much of your hard-earned cash as possible. We know taxes aren’t your favorite topic, but that’s what we’re here for. Let’s break down seven deductions you absolutely need to claim this tax season.
1. Home Office Expenses
Working from home? Guess what—you could be turning your workspace into a tax deduction.
Here’s the Deal:
- If you have a dedicated space for business (no, your kitchen table doesn’t count), you can deduct a portion of your rent, utilities, and internet.
- The more detailed your records, the bigger the payoff.
Our Tip: Snap a pic of your workspace and keep those utility bills handy. We’ll handle the math and make sure the IRS stays happy.
2. Website and Software Costs
Your website is the beating heart of your eCommerce empire, and all those tools and subscriptions you use? They’re deductible, too.
What to Include:
- Website hosting and domain fees.
- ECommerce platforms like Shopify or Etsy.
- Accounting software (we see you, QuickBooks users).
Why It Matters: These tools keep your business running, and they should keep your taxes running lean. We’ll make sure they do.
3. Advertising and Marketing Expenses
Social media ads? Email campaigns? Product photos? If you’re spending money to get your name out there, it’s deductible.
Eligible Expenses:
- Paid ads on platforms like TikTok, Instagram, and Google.
- Email tools like Mailchimp or Klaviyo.
- Design and photography services to make your brand pop.
How We Help: We’ll track every ad dollar so you’re not just growing your business—you’re shrinking your tax bill.
4. Shipping and Delivery Costs
Let’s be real—shipping can eat into your profits. Luckily, it’s deductible.
What You Can Write Off:
- Postage and shipping fees for orders.
- Packaging materials (boxes, tape, and even those eco-friendly peanuts).
- Delivery tracking and insurance.
Pro Tip: We’ll make sure every dollar you spend getting products to customers ends up as a tax deduction.
5. Professional Services (Like Hiring a CPA!)
When you bring in experts to help your business run smoothly, those costs are deductible. Yes, even paying us counts.
Here’s What Qualifies:
- CPA fees for tax planning (we’ve got your back).
- Legal services for contracts or trademarks.
- Freelancers helping with SEO, design, or marketing.
Why It’s Smart: Investing in pros like Insogna CPA, a trusted Austin tax accountant, saves you time, money, and stress.
6. Inventory Costs
If you’ve got inventory, you’ve got deductions—but timing is everything.
What to Know:
- Inventory gets deducted as Cost of Goods Sold (COGS) when you sell it, not when you buy it.
- Storage costs for inventory, like warehouses or fulfillment services, are also deductible.
Our Expertise: We’ll help you stay on top of inventory tracking so you deduct it at the right time and keep your cash flow smooth.
7. Business Travel
Business trips aren’t just great for networking—they’re great for your taxes.
Deductible Travel Expenses Include:
- Flights or mileage to trade shows, supplier meetings, or events.
- Hotels and lodging.
- Business meals (but only 50% of the cost).
How We Simplify It: We’ll make sure every travel receipt translates into tax savings—so keep those receipts handy!
Here’s the Bottom Line
We get it—running an eCommerce business is full of moving parts, and taxes might feel like the least exciting part of the job. But missing out on deductions? That’s money you could be reinvesting into your business (or treating yourself for all that hard work).
At Insogna CPA, a leading CPA in Austin, Texas, we specialize in helping eCommerce sellers like you maximize deductions and stay compliant. You’ve got big goals—we’ll help you reach them without worrying about tax season.
Let’s Make Tax Season Work for You
Not sure if you’re claiming every deduction? Let us take a look. At Insogna CPA, one of the top Austin CPA firms, we’ll review your finances, uncover hidden savings, and take the hassle out of taxes.
📞 Ready to save more and stress less? Contact Insogna CPA today and let’s keep more of your hard-earned profits where they belong—in your pocket.