Small Business Tax Deductions 2025: The Ultimate Checklist
Don't leave money on the table. Every dollar you deduct is a dollar you don't pay tax on. Use this comprehensive checklist to find every deduction you're entitled to.
💡 The Golden Rule of Deductions
To be deductible, a business expense must be both ordinary (common in your industry) and necessary (helpful for your business).
📋 Table of Contents
1. Home Office Deduction
If you use part of your home exclusively and regularly for business, you can deduct a portion of your home expenses.
Simplified Method
Deduct $5 per square foot of home office space (up to 300 sq ft).
Max Deduction: $1,500
Regular Method
Calculate the percentage of your home used for business. Deduct that % of mortgage interest, rent, utilities, insurance, and repairs.
Often Higher Deduction
2. Vehicle & Travel Expenses
Driving for business? You have two choices:
- Standard Mileage Rate: Deduct a set amount per mile driven (67 cents/mile in 2024, check 2025 rate). Easiest method.
- Actual Expenses: Deduct the business percentage of gas, oil, repairs, insurance, and depreciation. Requires detailed record-keeping.
Note: Commuting from home to your regular workplace is NOT deductible.
3. Marketing & Advertising
Almost everything you spend to promote your business is 100% deductible.
Deductible Items:
- ✅ Website hosting & design
- ✅ Google/Facebook Ads
- ✅ Business cards & flyers
- ✅ Email marketing software
- ✅ SEO services
- ✅ Sponsorships
4. Professional Fees & Software
You can deduct fees paid to professionals and software subscriptions necessary for your business.
- Legal and accounting fees
- Tax preparation fees
- Business consulting fees
- SaaS subscriptions (Zoom, Slack, QuickBooks, Adobe Creative Cloud)
5. Business Insurance
Premiums for insurance policies that protect your business are deductible.
- General liability insurance
- Professional liability (E&O) insurance
- Workers' compensation insurance
- Commercial property insurance
6. Startup Costs
Starting a new business? You can deduct up to $5,000 in startup costs and $5,000 in organizational costs in your first year of business.
Costs exceeding these limits must be amortized (spread out) over 15 years.
7. Education & Training
Investing in yourself is deductible if it maintains or improves skills required in your current trade.
- Seminars and webinars
- Professional books and subscriptions
- Work-related courses
- Trade publication subscriptions
Note: Education to qualify for a NEW career is NOT deductible.
Calculate VAT & GST
Need to calculate sales tax for your invoices? Use our free VAT and GST calculators to get accurate totals instantly.
Conclusion
Keeping good records is the key to maximizing your deductions. Save every receipt, track your mileage, and review this checklist before filing your taxes. When in doubt, consult a tax professional to ensure you're compliant while minimizing your tax bill.