Secret Expenses Entrepreneurs Can Write Off 

Let’s face it: being an entrepreneur is no walk in the park. Between juggling meetings, chasing leads, and building a brand from scratch, the last thing most of us want to do is sort through receipts and tax codes. 

But here’s the kicker: knowing what you can write off can seriously level up your business game.

Sure, you probably know about the basics—home office, travel, and maybe even that new laptop. But there are some lesser-known (and totally legit) expenses that can save you a boatload when tax season rolls around.

So grab your coffee, and let’s dive into the juicy stuff: the secret expenses you didn’t know you could write off.

1. Startup Costs (Yes, Even Before You Make a Dime!)

Did you spend money on your business before you technically had a business? Good news: those costs can often be written off. The IRS lets you deduct up to $5,000 in startup expenses and another $5,000 in organizational costs, like:

• Market research
• Business plan development
• Legal fees for incorporating
• Initial advertising
• Travel to find suppliers or distributors

If your startup costs exceed $50,000, the deduction gets phased out, but even so—that early hustle? It can pay off.

2. Education and Training (Lifelong Learning Pays Off)

Taking an online course on SEO? Attending a leadership seminar? These count! As long as the education is related to maintaining or improving your skills in your current business, it’s fair game.

What qualifies:

• Webinars
• Workshops
• Subscriptions to trade publications
• Industry conferences (yes, even the ones in sunny Vegas)

Just make sure you keep receipts and registration confirmations. If it’s a course that qualifies you for a new line of work, though, that might be a no-go.

3. Coffee, Meals, and Entertainment (Within Reason!)

We’re not saying every latte at your neighborhood café is tax-deductible. But if you’re meeting a client, collaborating with a freelancer, or taking a potential partner out for lunch? That could be a write-off.

Here’s the general rule: if the meal or entertainment has a clear business purpose and isn’t extravagant, you can usually deduct 50% of the cost.

Extra tip: jot down who you met with and what you discussed. It doesn’t have to be formal—a note on the receipt or a line in your expense tracker will do.

4. Your Car (Even That Beat-Up Sedan Counts)

You don’t need a Tesla with a vanity plate to get a car write-off. If you use your car for business—whether you’re heading to client meetings, doing site visits, or picking up supplies—you might be eligible to deduct vehicle-related expenses on your taxes.

There are two main ways to claim this deduction:

Standard Mileage Rate

This is the simpler method. The IRS sets a rate each year (for example, in 2024 it was 67 cents per business mile). You just track the miles you drive specifically for business and multiply them by the current rate. It’s quick, easy, and requires less record-keeping.

Actual Expenses

This method lets you deduct the actual costs of operating your vehicle for business. That includes things like:

• Gas
• Oil changes and other maintenance
• Tires
• Insurance
• Vehicle registration
• Depreciation or lease payments
• Interest on car loans (if applicable)

You’ll need to track and categorize all your car expenses throughout the year and figure out what portion was business-related. It’s more work, but it can result in a bigger deduction if your car costs are high.

Some key reminders:

• You can only choose one method per vehicle, per year. So, make sure you run the numbers and pick the one that gives you the largest tax break.
• Commuting doesn’t count. Driving from home to your regular office? That’s considered personal use. But driving from your office to a client meeting? That’s deductible.
• Keep good records. Whether you’re tracking mileage or actual expenses, detailed logs and receipts are your best friends if the IRS ever comes knocking.

Bottom line? Even if your car isn’t a flashy electric ride, it can still work hard for your business—and for your tax return.

5. Cell Phone and Internet Bills (Proportion Counts!)

If you use your phone or home internet for work (and let’s be real, who doesn’t?), you can deduct the business-use portion.

Let’s say 60% of your phone usage is for client calls, scheduling, or Zoom meetings. That means 60% of your bill could be deductible. Just be reasonable and ready to justify your estimate if asked.

6. Business Use of Your Home (The Not-So-Scary Home Office Deduction)

Ah, the home office deduction—often misunderstood, but oh so valuable. If you have a space in your home exclusively used for business, you may qualify.

There are two methods:

• Simplified method: $5 per square foot, up to 300 sq ft
• Regular method: A percentage of actual home expenses (mortgage interest, utilities, insurance, repairs)

Just be cautious: the space has to be regularly and exclusively used for business.

7. Professional Services (Your Experts Count Too)

Got an accountant? Hired a lawyer to review contracts? Paying a consultant to streamline your processes? All of those services are deductible.

Other examples:

• Virtual assistant
• Copywriter or graphic designer
• Bookkeeper
• HR consultant

Basically, if someone is helping you run your business better, the cost could be written off.

8. Bank and Payment Processing Fees (Sneaky but Deductible)

Those tiny little transaction fees that Stripe or PayPal charge you? Yep. Bank fees, credit card processing fees, even charges for business accounts or overdrafts—all potentially deductible.

They might seem small, but over a year, they add up.

9. Gifts and Swag (Be Generous, Strategically)

Want to impress a client with a holiday gift or send your team some branded hoodies? These expenses can often be written off, with some caveats.

For client gifts, the IRS caps deductions at $25 per recipient per year. Swag, on the other hand, often falls under advertising or promotion—and that can be fully deductible.

Pro tip: Keep your receipts and label them clearly so you don’t forget what went where.

10. Software and Subscriptions (The Tools of the Trade)

All those tools you use to keep your business humming? Goldmine for deductions.

Think:

• Accounting software (like QuickBooks or FreshBooks)
• Design tools (Canva, Adobe Creative Cloud)
• Social media schedulers
• Project management platforms (Trello, Asana)

If it helps you run your business, it’s likely deductible.

Wrapping It All Up

Here’s the deal: being a savvy entrepreneur means more than just chasing clients and launching products. It also means knowing where your money goes—and how to get some of it back come tax time.

The best thing you can do? Keep good records, use a smart accounting tool, and when in doubt, check with a tax professional. Because at the end of the day, every dollar you save on taxes is a dollar you can reinvest into growing your dream.

So go ahead, dig out those receipts—you might just uncover some gold.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Always consult a professional for guidance specific to your situation.