# What you can write off as a small business or freelancer > Business expenses lower the profit you pay tax on if they’re ordinary and necessary for your work. Common write-offs include supplies, software, the business share of phone and internet, advertising, platform fees and business mileage. A home office counts only if the space is used regularly and only for business. Commuting, everyday clothes, family meals and trips, and personal shares of mixed-use items usually don’t count. Keep receipts with notes, and be wary of “it’s all a write-off” advice. - URL: https://explained.page/business-write-offs - Language: en - Last checked: 2026-10-29 - Watch the 1-minute animated guide: https://explained.page/watch?start=business-write-offs ## Step by step 1. **Self-employed or running a small business?** Business expenses lower the profit you pay tax on. But not everything is a write-off. Here’s the plain test. 2. **The test: ordinary and necessary.** A deductible expense is common in your line of work and helpful for running the business. Personal costs don’t count. 3. **Common write-offs.** Supplies, software, the business share of your phone and internet, advertising, platform fees, and business miles driven. 4. **A home office can count, with rules.** The space must be used regularly and only for business. A kitchen table you also eat at usually doesn’t qualify. 5. **What usually isn’t deductible.** Commuting, everyday clothes you could wear anywhere, family meals and trips, and the personal share of mixed-use items. 6. **Keep receipts and notes.** Save receipts and write down the business purpose. Big purchases like equipment may be deducted over time or all at once under certain rules. 7. **Beware “it’s all a write-off” advice.** Writing off personal costs can lead to back taxes and penalties. When unsure, ask a tax professional. ## Checklist - Use the “ordinary and necessary” test - Supplies, software, ads, fees - Business share of phone and car - Home office only if work-only space - Skip personal costs - Keep receipts and notes ## 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. ## Common questions ### Can I write off my car? You can deduct the business use, using either the standard mileage rate or a share of actual costs. Keep a mileage log. Source page: https://explained.page/business-write-offs/questions/can-i-write-off-my-car ### Can I deduct my phone? The business-use share of your phone and service can be deductible. Personal use isn’t. Source page: https://explained.page/business-write-offs/questions/can-i-deduct-my-phone ### What business expenses can I deduct? Ordinary and necessary costs of running your business, like supplies, software, advertising, fees, business mileage and the business share of phone and internet. Source page: https://explained.page/business-write-offs/questions/what-business-expenses-can-i-deduct ### Can I deduct a home office? If a specific area of your home is used regularly and only for business. A simplified method based on square footage is available. Source page: https://explained.page/business-write-offs/questions/can-i-deduct-a-home-office ### Can I deduct meals as a business expense? Business meals are often only partly deductible, and only with a clear business purpose. Keep notes. Source page: https://explained.page/business-write-offs/questions/can-i-deduct-meals-as-a-business-expense ### Is my commute deductible? Commuting to a regular workplace usually isn’t. Driving between business locations or to clients often is. Source page: https://explained.page/business-write-offs/questions/is-my-commute-deductible ### How do I deduct business mileage? Use the IRS standard mileage rate or a share of actual car costs, and keep a log of business trips. Source page: https://explained.page/business-write-offs/questions/how-do-i-deduct-business-mileage ### What records do I need for write-offs? Receipts, notes on the business purpose, mileage logs and bank statements, with business and personal money kept separate. Source page: https://explained.page/business-write-offs/questions/what-records-do-i-need-for-write-offs ## Official sources - [IRS: deducting business expenses](https://www.irs.gov/) - [IRS: home office deduction](https://www.irs.gov/) - [SBA: manage your finances](https://www.sba.gov/) To find your local office, search for: - "IRS standard mileage rate this year" - "IRS simplified home office deduction" --- General information, not legal or professional advice. Rules differ by state. From explained.page (www.explained.page). Life’s stuff, explained simply.