Three Tax Tips for Business Owners in 2025

2025 Tax Deductions for Business Owners

Tax Day was last week and, assuming you filed your taxes (& not an extension,) you probably spent a little more than you wanted to complete your filing.

If you’d like to reduce that amount next year, here are three tax deductions that can help you do so:

Rent Deductions & the Home Office Deduction

The cost of rent is fully deductible assuming you do not have an ownership interest in the property you’re renting the space where your business runs.

If you’re in more of a work-from-home situation, perhaps the Home Office deduction is a choice. If there’s a space in your home that is used exclusively for business purposes on a regular basis, you may be able to deduct mortgage interest, insurance, utilities, repairs & depreciation for your home office. There’s also a “simplified” method which allows you to deduct up to $1,500.00 ($5 per square foot of the Home Office, up to 300 feet.)

Insurance Premiums Are Deductible

Not only is buying insurance smart (& in many industries necessary), it’s also a deductible expense.

That’s right you can deduct the ordinary and necessary costs of insurance premiums for your trade, business, or profession, including coverage for accidents and health, automobiles, theft, and malpractice.

So please, please, please, don’t skim on coverage. It’ll always cost you more down the line.

How to Deduct Phone & Internet As a Business Expense

It’s hard to imagine a business nowadays that doesn’t have an online presence or use the internet in a significant way. Luckly, costs related to your internet access, business phone and fax line are deductible.

If you use these services for both personal and business use, the deduction will be limited to the portion of costs specifically related to business use.

Tackle Taxes with TealAcre

Bonus tip for those of you that read this far: legal fees that are necessary and directly related to running your business are deductible.

So, don’t hesitate to reach out to TealAcre for your business’ legal needs. To contact us you can:

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