Let's face it – running a small business is expensive enough without paying more taxes than you need to. Whether you're a seasoned entrepreneur or just starting your side hustle, understanding Schedule C deductions can put thousands of dollars back in your pocket come tax time.
Gone are the days when claiming a home office was a red flag for auditors. If you're running your business from home (like millions of other Americans), you can deduct a portion of your rent or mortgage interest, utilities, insurance, and repairs. The key? The space must be used regularly and exclusively for business.
Pro tip: Consider the simplified option – deduct $5 per square foot of your home office (up to 300 square feet) to save time on calculations.
Your car isn't just taking you places – it's driving tax savings. Track your business miles and choose between:
Remember: Commuting to your first business location isn't deductible, but driving between business locations absolutely is.
Don't miss out on these often-overlooked insurance deductions:
Investing in yourself? That's deductible: