5 Unexpected Business Expenses You Can Deduct

Posted on October 7, 2024.

When tax season rolls around, many business owners are familiar with the standard deductions like office supplies, equipment, and travel. However, the tax code offers a surprising amount of flexibility when it comes to deducting business expenses. By understanding some of the less conventional deductions, you can potentially save more than you thought possible. Here are 5 unexpected business expenses you might not realize you can deduct.

1. Business-Related Subscriptions

If you subscribe to industry-related publications, professional journals, or even online software services (like a subscription to cloud storage or project management tools), those costs are deductible.

People often think of physical products when it comes to deductions, but digital subscriptions and memberships directly related to your business can reduce your taxable income.

Tip: Track all monthly subscriptions—whether for software, industry publications, or professional organizations—and include them when calculating your deductible expenses.

2. Education and Training

Whether you’re taking a course to learn new skills or sending your employees to conferences, education expenses are tax-deductible as long as they’re related to improving skills necessary for your business.

Many people assume education is a personal investment, but if the knowledge directly applies to your business or helps your team grow, you can deduct it.

Tip: Keep detailed records of any training programs, seminars, or workshops you or your employees attend, along with receipts for course fees or travel expenses.

3. Startup and Organizational Costs

Before your business officially opens its doors, you likely incurred some startup costs—like legal fees, market research, or even logo design. You can deduct up to $5,000 of these costs in your first year of operation.

Startup costs often feel like “pre-business” expenses, but the IRS allows you to deduct many of these investments once you’re officially operating.

Tip: Document every expense you incur before launch, including legal fees, research costs, and marketing expenses. These all count as deductible startup costs.

4. Bank Fees and Interest

Do you have a business bank account or credit card? Many people don’t realize that the fees charged by banks for these accounts—like monthly maintenance fees, wire transfer fees, and even ATM charges—are deductible.

Bank fees are often seen as an unavoidable cost of doing business, but they’re actually a deductible expense that can reduce your overall tax liability.

Tip: Review your bank statements for any service fees or interest paid on business loans or credit cards, and include them as part of your deductions.

5. Home Office Furniture and Décor

If you have a home office that qualifies for a deduction, you can also deduct some of the costs of furnishing and decorating that space. Items like chairs, desks, shelves, and even wall art can be considered business expenses.

Most people know about the home office deduction but overlook the fact that the furniture and decor used in that office space are deductible too!

Tip: Keep receipts for any furniture or decor you purchase specifically for your home office. Ensure your workspace qualifies as a legitimate home office by meeting the IRS guidelines of exclusive and regular use for business purposes.

Start Maximizing Your Deductions

These five unexpected business expenses can save you money and reduce your tax burden—if you know how to track and claim them. Don’t overlook the flexibility of tax deductions, and consult a tax professional to ensure you're fully optimizing the deductions available to your business.