Top 92 Small Business Tax Deductions for 2024 (and 11 to Avoid)

So far in this Ecommerce Tax Handbook we’ve covered sales tax, Amazon FBA, and tax law deadlines. Now we’re on to the fun stuff: deductions.

Taxes are business as usual, but so are a lot of other things. Small business in the U.S. are fortunate to have plenty of possible deductions to save money where they can.

Note that in order to use any of these deductions, you will need to prove the fees and cost. This means you need to keep receipts – all of them, and in an organized fashion.

Also, always consult with a tax advisor on when to use these and if you can. We’ve linked to several sites documenting when each deductible may apply to you. Not all of them will –– and some of the rules for being able to use the deduction can get quite granular.

Always double check with a tax expert to make sure you are neither overpaying or underpaying.

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92 Small Business Tax Deductions

1. Accounting fees
2. Advertising & marketing
3. Amortization
4. Bad debts that you cannot collect
5. Banking fees
6. Board meetings
7. Building repairs and maintenance
8. Business association membership dues
9. Business travel (here’s what you need to know!)
10. Cafeteria health-insurance plan (requires plan)
11. Car expenses
12. Charitable deductions made for a business purpose
13. Charity or traveling to perform charitable services
14. Cleaning/janitorial services
15. Collection expenses
16. Commissions to outside parties
17. Computers and tech supplies
18. Consulting fees
19. Continuing education for yourself to maintain licensing and improve skills
20. Contractors
21. Conventions and trade shows
22. Credit card convenience fees
23. Depreciation
24. Discounts to customers
25. Eating out while you’re traveling for business
26. Education and training for your employees
27. Employee wages
28. Employee benefits
29. Entertainment for customers and clients
30. Equipment
31. Equipment repairs
32. Exhibits for publicity
33. Family members’ wages
34. Franchise fees
35. Freelancers
36. Freight or shipping costs
37. Furniture or fixtures
38. Gifts for customers or employees ($25 deduction limit for each)
39. Group insurance (if qualifying)
40. Guard dog
41. Gym for employees, located onsite
42. Health insurance
43. Home office (see our handy article)
44. Insurance premiums for credit, liability, malpractice, worker’s comp, and other insurance
45. Interest
46. Internet hosting and services
47. Inventory
48. Investment advice and fees
49. Legal fees
50. License fees
51. Management fees
52. Materials
53. Maintenance
54. Medical expenses (with plan)
55. Mortgage interest on business property
56. Moving
57. Newspapers and magazines
58. Office supplies and expenses
59. Outside services
60. Payroll processing
61. Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
62. Parking and tolls
63. Penalties and fines paid for late performance or nonperformance of contracts
64. Pension plans
65. Permits and fees
66. Postage
67. Profit sharing
68. Publicity
69. Prizes for contests
70. Real estate-related expenses
71. Rebates on sales
72. Rent
73. Research and development (we literally wrote the guide on this one!)
74. Retirement plans
75. Royalties
76. Safe-deposit box
77. Safe
78. Service fees
79. Software and online services
80. Startup expenses
81. Stereo equipment for playing background music at work
82. Storage rental
83. Subcontractors
84. Taxes (amazingly, taxes incurred in running your business are deductible)
85. Telephone
86. Theft and loss
87. Tips. Just because you didn’t get a receipt doesn’t mean you can’t deduct the cost, but you should document it just the same.
88. Uniforms for your employees
89. Utilities
90. Waste removal
91. Website design
92. Workers’ compensation insurance

11 Deductions to Avoid All Together

1. A small business loan—but you can deduct whatever you purchase with the loan
2. Business attire that you can wear outside of work (ie, non-uniforms)
3. Contributing your time to charity
4. Membership dues, even to a professional organization
5. Federal income tax payments
6. Your life and disability insurance premiums if you’re a sole prop., partnership, or S Corporation
7. Lobbyists
8. Penalties and fines you pay as the result of breaking the law
9. Political contributions
10. Professional accreditation fees
11. Your own salary if you’re a sole proprietor

Questions, concerns or any other deductions we missed? Leave them in the comments below.