Are You Overpaying in Taxes? Let’s Fix That.
Running a business isn’t cheap. From software subscriptions to client lunches, the expenses add up fast but the good news? Many of them can lower your tax bill.
At Insogna CPA, a top Austin, Texas CPA firm, we help business owners maximize deductions, minimize tax liability, and keep more of their hard-earned money. If you’re not sure what qualifies as a write-off or worse, you’re missing deductions that could save you thousands. This guide is for you.
What’s a Business Tax Deduction, Anyway?
A tax deduction reduces your taxable income, which means you owe less in taxes.
Example: If your business earns $100,000 and you have $30,000 in deductible expenses, you’re only taxed on $70,000, not the full amount.
Key Rule: The IRS says a business expense must be “ordinary and necessary” to be deductible. (Translation: It has to actually help your business, not just be an excuse for a fancy dinner.)
Let’s break down what you can (and can’t) write off so you can stop overpaying and start saving.
1. Home Office Deduction (But Don’t Get Greedy!)
If you work from home, you might qualify for the home office deduction but only if you follow the rules.
What Qualifies?
✔ You must have a dedicated workspace—no, your couch doesn’t count.
✔ The space must be used exclusively for business (not part-time gaming, sorry).
How Much Can You Deduct?
- Simplified method: $5 per square foot (up to 300 sq ft).
- Actual expense method: A percentage of rent, utilities, and internet based on office size.
Common Mistake: Trying to deduct your entire rent or mortgage—that’s a big IRS no-go.
2. Business Travel (Yes, You Can Write Off That Trip—If It’s Legit)
If you travel for work, you can deduct flights, hotels, meals, and even Uber rides.
What Qualifies?
✔ Travel must be business-related (client meetings, conferences, or site visits).
✔ You can’t write off your spouse’s ticket unless they work for your company.
✔ Meals are 50% deductible so, yes, that steakhouse dinner counts (if it’s work-related).
Pro Tip: Keep detailed records of your travel expenses. The IRS loves to ask for proof.
3. Payroll & Contractor Payments (Because Your Team is a Tax Deduction)
If you’re paying employees or independent contractors, those expenses are fully deductible.
What’s Deductible?
✔ Employee salaries & wages
✔ Payroll taxes (Social Security, Medicare, unemployment)
✔ Independent contractors (1099 workers)
✔ Employee benefits & health insurance
Pro Tip: If you’re making over $50K in profit, switching from an LLC to an S-Corp could save you thousands in self-employment taxes.
4. Marketing & Advertising (Because Growth Costs Money)
Every dollar you spend on growing your business is tax-deductible.
Common Marketing Deductions:
- Facebook, Google, and Instagram ads
- Website development & hosting
- Business cards, flyers, branding costs
- Influencer partnerships & sponsorships
Pro Tip: Even SEO tools, CRM software, and email marketing platforms (like Mailchimp or HubSpot) are deductible!
5. Business Meals (Yes, But There Are Rules)
Business meals are 50% deductible, but only if they’re actually business-related.
What’s Deductible?
✔ Meals with clients, partners, or employees (where business is discussed).
✔ Catered meals for employee training or company events (100% deductible).
What’s NOT Deductible?
- That coffee run for yourself.
- Lunch at your desk (unless it’s a business meeting).
Pro Tip: Write down who you met with and why. The IRS loves documentation.
What’s NOT Deductible? (No, You Can’t Write Off That Beach Trip)
Some things don’t qualify as business deductions, no matter how much you try to justify them.
Not Deductible:
✘ Personal Expenses – If it’s not directly tied to your business, it’s not deductible.
✘ Hobby Businesses – If your business loses money year after year, the IRS may classify ✘ it as a hobby—which means no tax breaks.
✘ Political Contributions – Supporting a cause? Great. But campaign donations aren’t tax-deductible.
Golden Rule: If an expense isn’t necessary for your business, the IRS won’t let you deduct it.
How Proper Expense Tracking Saves You Thousands
Tracking your expenses isn’t just good business—it’s how you legally pay less in taxes.
Best Practices for Tracking Deductions:
✔ Use QuickBooks or Xero to categorize expenses automatically.
✔ Store digital copies of receipts with apps like Expensify.
✔ Separate business and personal accounts (trust us, it makes tax time easier).
How Insogna CPA Helps:
- We review your financials and flag potential deductions.
- We help you categorize expenses correctly so nothing gets missed.
- We create a tax strategy that lowers your overall liability.
Final Thoughts: Don’t Leave Money on the Table
You work hard for your business. Why give the IRS more than you have to?
- Maximize deductions to lower your taxable income.
- Track expenses properly to avoid IRS red flags.
- Work with a tax expert to ensure you’re not missing key savings.
At Insogna CPA, a trusted Austin Texas CPA firm, we help business owners:
- Reduce tax liability with smart deductions
- Optimize their business structure for tax savings
- Plan ahead so tax season is stress-free
Make sure you’re not leaving money on the table. Schedule a tax planning session with Insogna CPA today!