Tax deductions
What Counts as a Business Write-Off?
Learn what business write-offs are, which expenses may qualify, and why good records matter for tax deductions.
Written by Matt Reese, CPA
What makes something a write-off?
A business write-off is a deductible business expense. The IRS says a business expense generally must be both ordinary and necessary to be deductible. An ordinary expense is common and accepted in the trade or business; a necessary expense is helpful and appropriate for the business.
A write-off does not mean “free”
A write-off reduces taxable income — it does not mean the government pays for the item. If your business spends $1,000 on a deductible expense, taxable profit may go down by $1,000. The actual tax savings depends on your bracket, entity type, and overall tax situation.
Common business write-offs
- Accounting and tax preparation fees
- Business software and subscriptions
- Office supplies
- Website hosting and domain fees
- Contractor payments
- Business insurance
- Rent for business property
- Business mileage or vehicle expenses
- Marketing and advertising
- Merchant processing fees
- Certain business meals
Personal expenses are not business write-offs
Personal, living, and family expenses generally do not qualify as deductible business expenses. This is where business owners often get into trouble. A meal, trip, phone, vehicle, or subscription is not automatically deductible just because it was paid from the business account.
Mixed-use expenses need allocation
Some expenses are partly business and partly personal. In those cases, you generally deduct only the business portion. Vehicle expenses are a common example — if a car is used for both business and personal purposes, expenses must be divided based on actual mileage.
Documentation matters
A deduction is only as strong as the records behind it. Good records should show:
- What was purchased
- When it was purchased
- Who was paid and how much
- Why it was business-related
- Whether any part was personal
A business write-off is not just “anything you bought.” It must be ordinary, necessary, connected to your business, and supported by records. If you are not sure whether an expense qualifies, ask before tax season.
Frequently asked
Questions owners actually ask
- Can I write off clothes for work?
- Sometimes, but ordinary street clothes are usually difficult to justify. Clothing is stronger as a deduction when it is required, specialized, and not suitable for everyday wear.
- Can I write off meals?
- Some business meals may be deductible, but they need a legitimate business purpose and proper records.
- Can I write off my phone?
- If the phone is used for both business and personal purposes, only the business-use portion should be considered.
Take the next step
Turn tax questions into a plan. Book a call or see how we work with operating business owners.
Educational content only.This article is for informational purposes and does not constitute tax, legal, or investment advice. Every owner’s facts are different; consult a qualified CPA and advisor before acting. Tax and accounting services are provided through Matt Reese, CPA; investment advisory services are provided through Measured Risk Portfolios, a registered investment adviser. Matt Reese, CPA and Measured Risk Portfolios are separate entities; clients are not required to engage both.