When you’re running a small business, every deduction matters. The right tax strategy doesn’t just help you stay compliant—it helps you keep more of your hard-earned money working for your business.
But between juggling day-to-day operations and growing your company, digging through tax rules probably isn’t at the top of your to-do list. That’s where we come in.
At Estess CPA, we work with small business owners like you who want to take the guesswork out of tax season. Here’s a breakdown of the deductions you should know about in 2025—and how to make sure you’re not leaving money on the table.
1. Put Section 179 to Work for You
Buying new equipment or software this year? Thanks to Section 179, you can deduct up to $1,250,000 of qualifying purchases right away—rather than spreading that deduction over several years.
This could apply to:
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Machinery and tools
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Work vehicles (heavy SUVs or trucks often qualify)
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Business software
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Office furniture
Heads-up: To take advantage of this deduction, the equipment needs to be in service before December 31, 2025.
2. Don’t Forget About Bonus Depreciation
Bonus depreciation remains available in 2025, though it’s been reduced to 40%. This means you can immediately write off 40% of the cost of qualifying property, even after maxing out your Section 179 deduction.
If you’re planning a large purchase, timing it right can make a real difference. A quick consultation with your CPA can help you decide the best approach.
3. Home Office? Claim That Space
If you’re using a dedicated space in your home for work—whether it’s a full office or a corner of a spare room—you may be able to deduct certain home office expenses.
There are two ways to claim:
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Simplified method: $5 per square foot (up to 300 square feet)
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Actual expenses: A percentage of your home costs like utilities, mortgage interest, insurance, and repairs
The key: The space must be used exclusively for business.
4. Track Every Business Mile
Driving for client meetings, picking up supplies, or delivering products? Those miles could be deductible.
The IRS mileage rate for 2025 will be announced early in the year—but keeping a mileage log is one of the easiest ways to ensure you’re not missing this deduction.
Alternatively, you may deduct actual vehicle expenses—whichever gives you the bigger break.
5. Don’t Overlook Retirement Contributions
Contributing to retirement plans like a 401(k), SEP IRA, or SIMPLE IRA not only helps you save for your future but also reduces your taxable income today.
For 2025:
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401(k) contributions: Up to $23,500
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Catch-up contributions (age 50+): An additional $7,500
These plans are especially valuable if you’re self-employed or run a small business with just a few employees.
6. Health Insurance Counts, Too
If you’re self-employed, you may be able to deduct 100% of your health insurance premiums, including coverage for your spouse and dependents.
If you’re using a Health Savings Account (HSA), your contributions can also reduce your taxable income while giving you flexibility on medical spending.
7. Meals and Entertainment: What Still Qualifies?
The rules for meal deductions have shifted over the years, but here’s the current breakdown:
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50% deduction for meals with clients or partners where business is discussed
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100% deduction for certain team events or company parties
Tip: Save those receipts—and note the purpose of the meal and who you met with.
8. Education, Training, and Professional Services
Investing in your skills and knowledge is not only good for your business—it’s also deductible. This includes:
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Business-related workshops and courses
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Industry conferences and certification programs
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Fees paid to CPAs, legal advisors, and consultants for business-related services
9. Business Insurance: Don’t Skip This One
Premiums for business-related insurance are typically deductible. This includes:
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General liability insurance
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Professional liability (errors and omissions)
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Workers’ compensation insurance
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Business property insurance
This deduction is often overlooked because owners view insurance as just another bill—but it can significantly reduce your tax liability.
10. The Qualified Business Income (QBI) Deduction
If you own a pass-through business (sole proprietorship, partnership, S-Corp, or LLC), you may qualify for the 20% QBI deduction on your net business income.
There are income limits and specific restrictions, especially for service-based businesses. This is an area where working with a CPA can make a big difference.
11. Marketing and Advertising Expenses
Your website design, Facebook ads, Google pay-per-click campaigns, branded swag, and even SEO services? All deductible.
If it’s helping you attract new customers or promote your business, there’s a good chance it qualifies.
12. Startup Costs and Organization Fees
If you recently launched your business, you can deduct up to:
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$5,000 in startup costs
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$5,000 in organizational expenses (legal fees, state filings, etc.)
If your startup costs exceed these limits, the excess can be amortized over 15 years.
Stay Ahead—Don’t Wait Until Tax Season
The easiest way to miss deductions? Scrambling to gather your numbers at the last minute.
At Estess CPA, we believe tax planning shouldn’t be a once-a-year event. A little strategy now can save you a lot of stress (and money) later.
Need Help Finding Every Deduction You’re Entitled To?
Whether you’ve been in business for years or are just getting started, we’re here to help you keep more of what you earn.
Contact Estess CPA Today
📞 Belle Chasse Office: (504) 433-5122
📞 Luling Office: (985) 785-1470
📧 Email: [email protected]
🌐 Website: www.estesscpa.com
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