Are You Missing These Common Tax Deductions for Your Service-Based Business?

As a service-based business owner, every dollar counts when it comes to managing expenses and maximizing profits. Yet, many entrepreneurs overpay in taxes simply because they don’t take advantage of all the deductions available to them.

Tax deductions help lower your taxable income, meaning more money stays in your pocket instead of going to the IRS. But if you’re not keeping track of your expenses properly, you could be missing out on valuable savings.

Here are some of the most commonly missed tax deductions for service-based businesses:

1. Home Office Deduction

If you work from home and use a dedicated space exclusively for business, you may qualify for the home office deduction. You can deduct a portion of your rent or mortgage, utilities, and even internet costs based on the percentage of your home used for work.

🚨 Common mistake: Thinking you need a separate room—your office can be a small, dedicated workspace.

2. Business Mileage

If you drive to meet clients, attend networking events, or pick up supplies, those miles could be tax-deductible. The IRS allows a standard mileage deduction (which changes annually) or you can deduct actual expenses like gas, maintenance, and insurance.

🚨 Common mistake: Not tracking mileage throughout the year—use an app or QuickBooks to log it automatically.

3. Software & Subscriptions

Any software or apps you use to run your business—like QuickBooks, Zoom, Canva, or scheduling tools—are deductible.

🚨 Common mistake: Forgetting to deduct annual subscriptions or business-related phone apps.

4. Business Meals

Taking a client out for coffee or lunch? 50% of the meal cost is deductible if it’s directly related to your business.

🚨 Common mistake: Not keeping receipts or forgetting to document the business purpose of the meal.

Get Help Maximizing Your Deductions

Are you keeping track of all your deductible expenses? If not, you could be overpaying in taxes!

💡 Join the DBR Bookkeeping Online Community HERE and learn how to manage your finances like a pro.

📅 Need expert guidance? Schedule a FREE Tax-Savings Call with Dr. Bryan Raya, a QuickBooks ProAdvisor, to ensure you're not leaving money on the table.

Let’s start Doing Business Right!