What you can write off as a small business or freelancer

Rather read it? Here’s the whole thing.

The basic test

A business expense is generally deductible if it’s ordinary (common in your line of work) and necessary (helpful and appropriate for your business). Personal, family and living expenses aren’t.

Common write-offs

• Supplies, materials and software.
• The business share of your phone and internet.
• Advertising, website and marketing costs.
• Platform, bank and payment processing fees.
• Business mileage (standard mileage rate or actual costs).
• Professional services like tax preparation for the business.
• Business insurance and licenses.
• Education that improves skills in your current business.
• Business meals are often only partly deductible.

Home office

You may deduct a home office if a specific area is used regularly and exclusively for business. A simplified method based on square footage is available.

Big purchases

Equipment like computers or tools is often deducted over several years (depreciation), though some rules let you deduct it all at once.

Usually not deductible

Commuting to a regular workplace, everyday clothing, family meals and vacations, and the personal share of mixed-use items like a phone or car.

Keep records

Save receipts, note the business purpose, and keep business and personal money separate.

Be careful

“Everything is a write-off” advice can lead to back taxes, interest and penalties. Ask a tax professional when unsure.