Top 75 Tax Deductions and Strategies

Did you remember to claim the cost of your law office drone as a business deduction on your taxes this year?

How about the production expenses for your YouTube channel?

What’s that? You don’t have an office drone or a YouTube channel? No matter. The point is that you might be incurring some expenses that are valid business deductions – and that neither you nor your accountant are even aware of.

“Surprisingly, there isn’t some master list included in the Internal Revenue Code or provided by the Internal Revenue Service,” writes attorney, CPA and self-described “America’s Small Business Tax Lawyer” Mark J. Kohler in this article in Entrepreneur. “There is simply the tax principle, set forth in Code Section 62, which states a valid write-off is any expense incurred in the production of income. Each deduction then has its own rules.”

Work With Your Accountant

Kohler, who practices in Utah,  suggests lawyers who are solo and in small firms should be proactive – not reactive – in coming up with smart tax strategies.

“You are the captain of your own ship,” he says in the Entrepreneur piece. “You don’t have to be an accountant to manage your accountant. A good CPA should be teaching their clients to think above the line – that is, your Adjusted Gross Income (AGI) line.”

To Kohler, thinking “above the line” means considering the 75 items on his list of possible tax deductions for business owners.

“It’s just a start and not every one of these items is always a viable deduction, but certainly worth a discussion,” he writes. “Your accountant should be suggesting these to you … and they should be trying to find ways to write-off expense, not just telling you no and talking down to you. Use this list as a discussion point and make sure you have the right person helping you with your taxes.”

75 Possible Tax Deductions (plus two bonus deductions)

1. Accounting fees
2. Advertising
3. Amortization
4. Auto Expenses
5. Banking fees
6. Board Meetings
7. Building repairs and maintenance
8. Business Travel
9. Business association membership dues
10. Charitable deductions made for a business purpose
11. Children on Payroll
12. Cleaning/janitorial services
13. Cameras
14. Collection Expenses
15. Commissions to affiliates
16. Computers and tech supplies
17. Consulting fees
18. Continuing education for yourself to maintain licensing and improve skills
19. Conventions and trade shows
20. Costs of goods sold
21. Credit card convenience fees
22. Depreciation
23. Dining and Office food
24. Drones
25. Education and training for employees
26. Equipment
27. Exhibits for publicity
28. Franchise fees 
29. Freight or shipping costs
30. Furniture or fixtures
31. Gifts for customers ($25 deduction limit for each)
32. Group insurance (if qualifying)
33. Health insurance
34. Equipment repairs
35. Health Reimbursement Arrangement
36. Health Savings Account
37. Home office
38. Interest
39. Internet hosting and services
40. Investment advice and fees
41. Legal fees
42. Leased Vehicle or equipment
43. License fees
44. Losses due to theft
45. Materials
46. Maintenance and janitorial
47. Mortgage interest on business property
48. Moving
49. Newspapers and magazines
50. Office supplies and expenses
51. Outside services
52. Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
53. Parking and tolls
54. Pass-Through 199A Deduction
55. Pension plans
56. Postage
57. Prizes for contests
58. Real estate-related expenses
59. Rebates on sales
60. Rent
61. Research and development
62. Rental Property
63. Retirement plans
64. Royalties
65. Safe-deposit box
66. Safe
67. Spouse on Payroll
68. Social media advertising
69. Software and online services
70. Storage rental
71. Subcontractors
72. Taxes (Personal and Real Property)
73. Telephone
74. Utilities
75. Video equipment for business YouTube channel
76. Website design
77. Workers’ compensation insurance

Another key point: Keep good records. “Track every single expense related to your business and comb over them with your CPA at the end of the year to ensure you only take legitimate deductions,” says Kohler. “Good record keeping and thoughtful consideration will minimize your risk of an audit if the IRS ever comes knocking.”