Business Expenses Deduction (2025)
Ordinary and necessary business expenses that reduce Schedule C profit and self-employment tax.
What Qualifies
- Rent, utilities, and office supplies used for business
- Business travel, meals (50% deductible except certain years), and lodging
- Software subscriptions, advertising, and professional fees
- Depreciation and Section 179 expensing for qualifying equipment
- Employee wages and contractor payments (with proper forms)
Recordkeeping & Receipts
Keep receipts, invoices, bank statements, and logs for at least 3 years. Use separate business accounts where possible.
Common Mistakes
- Mixing personal and business expenses
- Not substantiating business mileage or travel
- Claiming personal expenses as business deductions
- Failing to issue Form 1099-NEC when required