“Write It Off!” Small business tax myths, half-truths, and actual deductions: what you can and can’t write off, explained with real examples.

We’ve all heard them...

“Write off your whole vacation—it was for mindset!” “Just buy it through your business account and it’s a deduction. “Your entire house? Totally deductible.”

👀 Spoiler: not quite.

When you’re running a small business, the line between life and business can get real blurry. But when it comes to taxes? The IRS likes its lines drawn a little cleaner. So lets dive into deduction myths, half-truths, & actual facts.

💭 Myth: “If I use it for business, It's all small business tax deduction”

🔎 Half-Truth: Business-use matters but so does how much you use it for business.

✅ Truth: You can only deduct the business-use portion of mixed-use expenses.

Examples:

• 📱 Cell phone: Deduct the % used for client calls, not your TikTok scrolls

• 🚗 Car: Track your mileage, Target runs don’t count

• 🌐 Wi-Fi: Split between personal + business use

💭 Myth: “My home office means I can write off my rent.”

🔎 Half-Truth: Yes, the home office deduction exists.

✅ Truth: Only for a space that’s exclusively and regularly used for business.

Examples:

• ✅ Spare bedroom turned office? Deductible

• ❌ Kitchen table where you also eat lunch? Nope

• 🧮 Bonus: You can use actual expenses or the simplified IRS method (based on square footage)

💭 Myth: “Business meals? Just save the receipt.”

🔎 Half-Truth: Some meals are a small business tax deduction but there are rules.

✅ Truth: You can deduct 50% (sometimes 100%) if the meal is business-related.

Examples:

• 🍽️ Lunch with a client or vendor: 50% deductible

• 🎉 Team celebration or party: 100% deductible

• 🥡 Solo lunch while working: Nice try, not deductible

💭 Myth: “Work clothes are a business expense.”

🔎 Half-Truth: Only if they’re required and not everyday wear.

✅ Truth: The IRS is clear—fashion doesn’t count unless it’s functional and specific.

Examples:

• ✅ Branded polos or safety gear: Deductible

• ❌ Your stylish work blazer: Even if it’s “just for work,” still no

• 🧢 Logo hats or uniforms: Often okay if required

💭 Myth: “If I bought it with my business card, it’s deductible.”

🔎 Half-Truth: Using a business account helps with tracking—but it doesn’t make it deductible.

✅ Truth: It’s the purpose of the expense, not the payment method, that matters.

Examples:

• 💳 Personal groceries on the business AmEx?  Not deductible

• 🧾 Business coaching paid from a personal account?  Still deductible, just track it properly

• 🔍 Tip: Keep clean records either way

💭 Myth: “Travel is deductible if I thought about work while I was there.”

🔎 Half-Truth: Business travel is deductible but only with clear intent and documentation.

✅ Truth: You need a business reason, receipts, and proof of work-related activities.

Examples:

• ✅ Conference in another state?  Deduct travel, hotel, meals

• ❌ Family vacation where you checked email?  That’s a no

• ✍🏼 Client visit or workshop with notes + agenda?  Deductible

🧾 Want to Know What’s Actually Deductible?

Here’s a quick list of legit business expenses you might be missing:

• Business software + subscriptions

• Contractor and freelancer payments

• Branding, ads, and website costs

• Professional development (courses, books)

• Business insurance

• Coworking space or rent

• Bank fees + payment processor fees

• Postage, shipping, and packaging

• Domain registration + hosting fees

• Business-related gifts (up to $25 per person/year)

Just because your cousin said to "write it off" at Thanksgiving doesn’t mean the IRS agrees.

📬 Want help figuring out what’s actually deductible in your situation? Let’s talk.

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Stillwater Business Solutions is run by Karolyn and Bryan, a tech-savvy and community-focused team who believe bookkeeping should feel collaborative and empowering—not confusing. Whether you're looking to simplify your systems or get support you can trust, we're here when you're ready. No pressure. Just people-first accounting that fits your business.