What Are the Top 7 Tax Deductions Entrepreneurs Overlook and How Can You Avoid Leaving Money on the Table?
Your tax return is probably leaking thousands. Here are the 7 most-overlooked deductions — and the simple rules to claim every dollar you deserve.
Summary of What This Blog Covers
- Home office (regular & exclusive use)
- Internet/phone splits with evidence
- Mileage (67¢ rate or actual)
- Section 179 / bonus on equipment & software
- Startup costs up to $5k immediate
- Retirement contributions (SEP vs. Solo 401(k))
- State PTE elections that bypass SALT caps
1. Home office + utilities
Regular + exclusive use → deduct % of rent/mortgage interest, utilities, insurance, repairs (or $5/sq ft simplified).
2. Internet & phone
Reasonable business % (60–90% common) backed by logs or a one-page memo.
3. Mileage
67¢/mile (2025 rate) with date, purpose, miles — or actual expenses if the car is expensive.
4. Section 179 / bonus depreciation
Up to $1.25M instant + 60% bonus on the rest (new or used).
5. Startup & organizational costs
Up to $5k immediate expensing each; amortize the rest over 15 years.
6. SEP / Solo 401(k)
Up to 25% of compensation (or $69k/$76k max 2025) — deductible now, grow tax-free.
7. State PTE tax elections
Pay state tax at entity level → bypass $10k SALT cap (TX doesn’t have, but many states do).
Want us to find every deduction you’re missing this year?
Email your last expense sheet (or book a quick call) and Insogna will run a Missed Deductions Review — we’ll show you exactly what’s still on the table and set up the simple tracking that locks it in. Whether you searched “small business CPA Austin”, “tax preparer near me”, or “maximize deductions”, we turn receipts into real savings.
Frequently Asked Questions
1) Is the home office deduction still an audit flag?
No — sloppy records are the flag. Exclusive use + documentation = safe and valuable.
2) Can I just estimate internet/phone %?
Yes, if reasonable and documented once (memo + sample logs).
3) Standard mileage or actual — which wins?
Run both. Efficient cars → standard rate. Luxury/high-cost → actual.
4) Should I always take Section 179/bonus?
Not if profit is low this year and rising next — sometimes spreading saves more overall.
5) Do PTE elections help in Texas?
No state income tax = no PTE needed. Other states, yes — we model it.