Tax Deductions for Other: What Owners Commonly Miss
Last updated: October 17, 2026Written by Shane Atkins, founder of TaxSaver Pro
Every business has its own mix of costs, and the deductions that get missed are the ones paid personally and never captured. This guide covers the deduction categories that apply across most small businesses. Use it as a starting point, then look for industry-specific write-offs that fit your work.
Commonly missed deductions
01Home office
- What qualifies
- The dedicated space used for business admin and records.
- What doesn't qualify
- Space also used for personal or family purposes, occasional or incidental work at home, and costs for parts of the home not used for business. W-2 employees working from home generally can't take this deduction on their federal return.
- Records to keep
- Measurements of the office and of the whole home, a photo or floor plan of the space, and, if you use the regular method, rent or mortgage interest statements, utility bills, homeowner's or renter's insurance, and repair receipts.
02Vehicle and mileage
- What qualifies
- Business driving and deliveries.
- What doesn't qualify
- Commuting between your home and a regular workplace, personal errands and trips, the personal-use share of a mixed-use vehicle, traffic tickets and fines, and claiming both the standard mileage rate and actual expenses for the same vehicle in the same year.
- Records to keep
- A mileage log kept as you go, showing date, destination, business purpose, and miles for each trip; odometer readings at the start and end of the year; parking and toll receipts; and receipts for gas, repairs, and insurance if you use the actual expense method.
03Phone and software
- What qualifies
- Calls, subscriptions, and tools used for work.
- What doesn't qualify
- The personal-use share of your phone and internet, the basic charge for the first landline into your home, and personal subscriptions such as streaming or personal apps.
- Records to keep
- Monthly phone and internet bills, a written basis for your business-use percentage (such as a review of a typical month), and invoices or account statements for each software subscription.
- IRS source
- IRS Publication 535 — Business Expenses
04Supplies and equipment
- What qualifies
- Items you buy and replace to run the business.
- What doesn't qualify
- The personal-use share of anything also used at home, items a client reimburses you for, and items already counted in cost of goods sold. Larger equipment may need to be depreciated over several years rather than deducted all at once.
- Records to keep
- Receipts or invoices showing date, vendor, item, and amount. For larger equipment, also record the date you started using it in the business and its business-use percentage.
- Current rate
- See the current Section 179 limit on IRS.gov.
05Business insurance
- What qualifies
- Liability coverage for your operations.
- What doesn't qualify
- Personal life insurance where you or your family are the beneficiary, personal auto or homeowner's policies (those are covered through the vehicle or home office deduction), and insurance that replaces your own lost income. Self-employed health insurance is claimed separately, not as a business expense.
- Records to keep
- Policy declaration pages, premium invoices, and proof of payment.
- IRS source
- IRS Publication 535 — Business Expenses
Records checklist
A summary of every record mentioned on this page. Keep these with your tax return.
- Home officeMeasurements of the office and of the whole home, a photo or floor plan of the space, and, if you use the regular method, rent or mortgage interest statements, utility bills, homeowner's or renter's insurance, and repair receipts.
- Vehicle and mileageA mileage log kept as you go, showing date, destination, business purpose, and miles for each trip; odometer readings at the start and end of the year; parking and toll receipts; and receipts for gas, repairs, and insurance if you use the actual expense method.
- Phone and softwareMonthly phone and internet bills, a written basis for your business-use percentage (such as a review of a typical month), and invoices or account statements for each software subscription.
- Supplies and equipmentReceipts or invoices showing date, vendor, item, and amount. For larger equipment, also record the date you started using it in the business and its business-use percentage.
- Business insurancePolicy declaration pages, premium invoices, and proof of payment.
Related guides
Go deeper on the rules behind these deductions
Educational guidance only, not tax advice. Talk to a tax professional about your situation.