Write It Off If You Can: A Strategic Guide to Business Deductions
- bedilia8
- Jul 7
- 1 min read
When it comes to business expenses, the phrase "write it off" is often thrown around casually—especially on social media. But in reality, the IRS doesn’t operate on vibes or viral hacks. It works on documentation, purpose, and specific rules. And for business owners serious about saving on taxes, understanding those rules is the key to protecting profits and reducing risk.
This article outlines the most misunderstood business deductions—and how to claim them correctly.
The Foundational Rule: Ordinary, Necessary, and Business-Driven
Before anything else, remember this: to qualify as a deduction, an expense must be ordinary, necessary, and connected to an actual business.
Ordinary means it’s common in your industry—not just in your opinion.
Necessary means it’s helpful and appropriate—not essential, but justifiable.
Business-driven means the activity must be part of a legitimate trade or business, not a hobby.
Now let’s break down some of the most commonly asked-about deductions:
1. Meals
Deductibility: 50% if you dine with a client, prospect, or business associate.
Rules: Must not be lavish; eating alone isn’t deductible (unless you’re traveling).
Best Practice: Write who you met with, where, and what was discussed—directly on the receipt. Snap a photo and store it using software like QuickBooks Online.
2. Travel
Primary Purpose Must Be Business. You must spend the majority of the trip on business-related activities.
Deductible: Roundtrip airfare, hotel on business days, meals, taxis/Ubers.
Not Deductible: Extra days added for leisure. Bringing a spouse or children, unless they work for your business.
3. Vehicle Use
Deductible: Only for actual business trips (not commuting).
Methods: Standard mileage rate or actual expenses—but either way, you must track mileage.
Home Office Exception: If your home office qualifies as your principal place of business, more mileage becomes deductible.
Best Practice: Use apps like MileIQ or Everlance to automatically log your drives.
4. Home Office
Qualifies If: The space is used exclusively and regularly for business.
Not Deductible: Your dining table or spare bedroom used occasionally.
Methods: Simplified rate or actual expenses. Keep utility and rent documentation.
5. Work Clothing & Uniforms
Deductible If: The clothing is required and not suitable for everyday use (e.g., branded uniforms, safety gear, performance costumes).
Not Deductible: Suits, polos, or anything that could be worn outside work—even if you don’t.
Bonus: Cleaning costs for qualifying items may also be deductible.
6. Tech & Tools
Deductible: Laptops, phones, and software that are ordinary and necessary for your business.
Key Rule: It can’t be primarily personal. A phone used for business is deductible. A phone used mostly for TikTok scrolling isn’t.
The Bottom Line
Don’t spend money just for a deduction. But if you're going to spend it anyway—on meals, travel, tech, or workspace—be intentional. Document it. Use the right tools. And understand the rules so your business can do some of the tax heavy lifting.
It’s not about gaming the system. It’s about understanding it.
For a personalized tax planning strategy, visit www.tandvllp.com/tax-planning.
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