Business Expense Deduction Guide for Entrepreneurs (2026)
Maximize business expense deductions: home office, vehicle, equipment, travel, and professional services. Documentation requirements and deduction limits.
Summary
Business expenses reduce taxable income significantly. This guide explains deductible categories, documentation requirements, and IRS audit defense strategies.
Key Steps
- 1Identify deductible categories: supplies, equipment, travel, professional services.
- 2Track home office deduction: simplified method ($5/sq ft) vs actual expenses.
- 3Document vehicle expenses: mileage log or actual expense method.
- 4Calculate equipment depreciation: Section 179, bonus depreciation, MACRS.
- 5Maintain audit-ready records: receipts, invoices, business purpose documentation.