75+ Business Tax Deductions Checklist — US Small Business (2026)

Quick Answer

US small businesses can deduct ordinary and necessary business expenses from taxable income. Here are the top categories:

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Top Business Tax Deductions

1. Home Office Deduction

• Simplified method: $5 per sq ft, max 300 sq ft = $1,500 max
• Regular method: Actual expenses × business use percentage
• Must be used regularly and exclusively for business

2. Vehicle & Mileage

| Method | 2026 Rate | |---|---| | Standard mileage | 67 cents/mile (estimated) | | Actual expenses | Gas, insurance, repairs, depreciation |

💡 You cannot switch from actual expenses back to standard mileage for the same vehicle.

3. Business Meals

• 50% deductible for meals with clients/prospects where business is discussed
• Must document: date, place, business purpose, attendees, amount
• Company holiday parties and team meals: 100% deductible

4. Health Insurance (Self-Employed)

• 100% deductible for self-employed individuals
• Covers you, your spouse, and dependents
• Claimed on Schedule 1, not Schedule C

5. Retirement Contributions

| Plan | Max Contribution (2026) | |---|---| | Solo 401(k) | $23,500 + 25% of net SE income | | SEP-IRA | 25% of net SE income (max ~$69,000) | | SIMPLE IRA | $16,500 + employer match | | Traditional IRA | $7,000 ($8,000 if 50+) |

6. Section 199A (QBI Deduction)

• 20% deduction on qualified business income
• Available for sole proprietors, partnerships, S-corps
• Phase-out starts at $191,950 (single) / $383,900 (MFJ)
• Specified service businesses face additional limitations

Complete Deduction Checklist

Office & Operations

• [ ] Rent and utilities
• [ ] Office supplies and equipment
• [ ] Computer and software (Section 179)
• [ ] Business phone and internet
• [ ] Postage and shipping
• [ ] Printing and copying

Professional Services

• [ ] Accounting and bookkeeping fees
• [ ] Legal fees
• [ ] Consulting fees
• [ ] Payroll service fees

Marketing & Sales

• [ ] Advertising (Google Ads, Facebook, etc.)
• [ ] Website hosting and domain
• [ ] Business cards and marketing materials
• [ ] Trade show and conference expenses

Insurance

• [ ] General liability insurance
• [ ] Professional liability / E&O
• [ ] Business property insurance
• [ ] Workers' compensation
• [ ] Health insurance (self-employed)

Travel

• [ ] Airfare and lodging (business purpose)
• [ ] Car rental
• [ ] Uber/Lyft for business
• [ ] Meals during business travel (50%)
• [ ] Conference registration fees

Education & Development

• [ ] Business-related courses and seminars
• [ ] Professional books and subscriptions
• [ ] Industry certifications
• [ ] Professional association dues

Frequently Asked Questions

What's the difference between Section 179 and depreciation?

Section 179 lets you deduct the full cost of qualifying equipment in the year of purchase (up to $1,220,000 for 2026). Depreciation spreads the cost over the asset's useful life. Bonus depreciation (80% for 2026) is another option.

Can I deduct startup costs?

Yes — up to $5,000 in the first year (reduced if total startup costs exceed $50,000). Remaining costs are amortized over 180 months.