Running a small business is demanding. Between managing employees, juggling client deadlines, staying on top of invoices, and trying to squeeze in a little marketing—it is reasonable to expect tax planning may not make it to the top of your to-do list.

But here’s the thing: missing even a few key deductions can cost you thousands. Let’s talk through a few commonly overlooked write-offs that can make a real difference come tax time.

1. 🚗 Vehicle Tax Deductions for Small Business Owners

If you are driving for your business— whether it’s meeting with clients in Chapel Hill, picking up supplies, or heading to a job site—you may be able to deduct those trips. The IRS gives you two options:

• Standard Mileage Rate: Track your business miles and multiply by the current IRS mileage rate.
• Actual Expenses: Deduct a portion of your actual expenses: gas, insurance, repairs, etc.

Choose the method that gives you the larger deduction. Just make sure you keep solid records—apps like Everlance, MileIQ, TripLog, or Stride make this super simple. 

2. 🏠 Home Office Deduction for Chapel Hill Business Owners

If you use a portion of your home exclusively for business, you might qualify for the home office deduction. That means part of your rent or mortgage, utilities, and even some repairs could be deductible.

• Exclusive Use: The space must be used only for business—cannot be your dining room table, family movie room or bedroom.
• Regular Use: A space you use regularly and consistently, not just occasionally.

Done right, this deduction can add up fast, especially if you’re working from home full-time or part-time.

3. 💻 Equipment and Technology Write-Offs: Section 179 Explained

Bought a laptop, upgraded your printer, or finally got that standing desk this year? Business equipment is deductible, and you’ve got options:

• Section 179: Deduct the full cost in the year you buy it (great if you had a big income year).
  Depreciation: Spread the cost out over the asset’s useful life.

The best strategy depends on your taxable income and cash flow — but either way can seriously reduce your taxable income.

💡“Every dollar saved in taxes is a dollar you can reinvest in your business.”

And That’s Just the Start…

There are so many other potential deductions—health insurance premiums, business travel, client meals, continuing education. The key is knowing what you can deduct and how to document it so you’re protected if the IRS sends correspondence.

When not to DIY

Unless you have the knowledge and keep up with the changing tax laws, evolving business needs, and all the gray areas in the code, it’s easy to miss opportunities or make costly mistakes. Working with a professional doesn’t just help you stay compliant—it can uncover deductions you didn’t even know you qualified for.

Let’s Make the Tax Code Work for You

At the end of the day, every dollar you save on taxes is a dollar you can reinvest—into your team, your tools, or even your own paycheck. If you’re ready to get proactive and stop leaving money on the table, we’re here to help.

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We work with many small business owners right here in Chapel Hill, from solo consultants to growing startups but we are not limited by location. Reach out today, and let’s build a tax strategy that works just as hard as you do.