Top 10 Tax Deductions Small Businesses Miss in 2025

As a small business owner in Brooklyn or NYC, maximizing your tax deductions is crucial for maintaining healthy cash flow and profitability. However, many businesses overlook valuable deductions that could save them thousands of dollars each year.

1. Home Office Deduction

If you use part of your home exclusively for business, you can deduct a portion of your mortgage, rent, utilities, insurance, and maintenance costs. The key word is "exclusively" – the space must be used only for business purposes.

2. Vehicle Expenses

Whether you use the standard mileage rate or actual expenses method, business vehicle costs are deductible. Keep detailed logs of business miles driven, including dates, destinations, and purposes.

3. Technology and Software

Computers, phones, accounting software, and other technology purchases used for business are fully deductible. This includes subscriptions to cloud services, project management tools, and accounting platforms like QuickBooks.

4. Professional Development

Continuing education, industry conferences, workshops, and professional certifications that improve your business skills are deductible expenses.

5. Business Insurance Premiums

Liability insurance, property insurance, workers' compensation, and professional indemnity insurance premiums are all deductible business expenses.

6. Marketing and Advertising

Website development, social media advertising, business cards, promotional materials, and sponsorships are all deductible marketing expenses.

7. Meals and Entertainment (with limitations)

Business meals with clients or prospects are 50% deductible. Keep receipts and note who you met with and the business purpose.

8. Retirement Contributions

Contributions to SEP IRAs, SIMPLE IRAs, or solo 401(k) plans are deductible and help you build retirement savings tax-efficiently.

9. Bank Fees and Interest

Business credit card interest, loan interest, and bank service fees are fully deductible.

10. Startup Costs

You can deduct up to $5,000 in business startup costs in your first year, with remaining costs amortized over 15 years.

Work with a Professional

Tax laws are complex and change frequently. Working with a qualified Brooklyn CPA ensures you're claiming all eligible deductions while remaining compliant with IRS regulations. At Accounting Standards Inc, we help small businesses maximize their tax savings through strategic planning and accurate record-keeping.

Ready to reduce your tax burden? Schedule a free consultation with our expert tax team today.