Three tax write-offs you had no idea existed…
and how they could save your small business thousands.
When it comes to tax season, most small business owners are just trying to stay out of trouble. But while you're busy playing it safe, you might be missing out on legitimate deductions that could significantly reduce your tax bill.
At GoodBookkeeping.com, we help clients spot opportunities the average business owner often overlooks. Here are three (of many) tax write-offs that could put real money back in your pocket.
Hire your kids
If you run a business and your kids help out, you might be eligible for a deduction most people overlook: paying them a salary. That’s right - hiring your children can reduce your taxable income, and in many cases, they won’t owe federal income tax on what they earn.
Here’s how it works. If your business is a sole proprietorship or an LLC treated as one, you can hire your children under 18 without paying Social Security or Medicare taxes. Their wages become a business expense, lowering your overall profit. And if they earn under the standard deduction ($14,600 in 2024), they likely owe no income tax either.
It has to be real work - filing, packing orders, running errands, or even social media help. Pay a fair wage, keep records, and process payroll properly. When done right, it’s a smart and legal strategy that puts money in your family’s pocket without it getting taxed.
Deduct your car
Using your car for business, even part-time, can unlock big savings, even if the car you use isn’t an official “company car.”
You can write off mileage (67 cents per mile in 2024) or a percentage of actual expenses like gas, insurance, repairs, and depreciation. If you buy a car mainly for business, you might even qualify to deduct a chunk of the purchase price in year one.
Whether you’re visiting clients, delivering products, or heading to meetings, the key is tracking business use accurately. It adds up fast.
Bonus tip: The IRS standard mileage rate changes yearly. We can help you keep on top of changes to guidelines like this so that you don’t get caught out! (Just saying…)
Write off your home
Work from home? Then part of your rent, utilities, internet, and even repairs might be deductible.
If you use a dedicated space for your business - like a home office - you could qualify for the home office deduction. You can use the simplified method (based on square footage) or track a percentage of actual costs.
And here’s one most business owners miss: if you host team meetings, client retreats, or even video shoots in your home, your business can rent your home from you - for up to 14 days per year - and deduct the cost. You don’t pay tax on the rental income (under the Augusta Rule), but you do need to charge a fair market rate and document it with a proper rental agreement and invoice.
Done right, it’s a completely legal tax-free benefit.
Tax rules are full of opportunities - if you know where to look. At GoodBookkeeping.com, we help business owners spot smart, legal ways to save. No stress. No guesswork. Just more money in your pocket.
