Filing taxes as a small business owner—whether you’re launching a startup or managing an established enterprise—can be overwhelming, and many entrepreneurs in Plano, Dallas, and across Texas miss out on deductions that could save them thousands of dollars each year. If you’re only claiming the most obvious expenses, you may be leaving money on the table.
At Beckley & Associates PLLC, a Plano CPA firm specializing in small business tax strategies, we work with business owners throughout North Texas to identify overlooked tax deductions that can lower taxable income and help businesses thrive.
Below, we’ll highlight overlooked small business tax deductions that can lower your taxable income and help your business thrive.
Are You Missing Out on Valuable Tax Deductions?
Home Office Deduction
If you work from home, you may qualify for the home office deduction, allowing you to deduct a portion of your rent or mortgage, utilities, and internet. Many business owners in Plano, Frisco, and Dallas, TX have embraced remote work, making this deduction increasingly valuable. However, rhe space must be exclusively used for business purposes.
You can calculate your deduction using either the simplified method (based on square footage) or the actual expense method (itemizing specific costs). Even if you don’t own your home, you can still deduct a percentage of rent, utilities, and maintenance related to your office space.
For more details on eligibility and how to claim this deduction, refer to the IRS’s official guide on Business Use of Your Home.
Business Mileage Deduction
Do you drive for business purposes? Whether you’re meeting clients in Plano, picking up supplies from Dallas, or attending conferences somewhere else, you can deduct business-related mileage. The IRS standard mileage rate for 2024 is 67 cents per mile. You can also deduct actual expenses, such as gas, insurance, and maintenance, but record-keeping is crucial. Using a mileage tracking app can help ensure compliance with IRS requirements.
To see the most up-to-date mileage rates and guidelines, visit the IRS Standard Mileage Rates.
Startup Costs Deduction
If you recently launched your business, you can deduct up to $5,000 in startup expenses in your first year of operation. Eligible expenses include business registration fees, legal and accounting services, and marketing costs. Keeping detailed records of all initial expenses helps you maximize your first-year tax savings.
The IRS provides further guidance on which startup costs qualify and how to deduct them in their Tax Guide for Small Business.
Business Meals Deduction
Taking clients out for a meal or networking over lunch? Business meals are 50% deductible, as long as they meet IRS guidelines. The meal must be directly related to business, and you must document the attendees and the purpose of the meeting. Keeping receipts and noting who you dined with can help avoid issues if audited.
Marketing, Advertising & Promotion Deductions
Marketing, advertising and promotion are essential for business growth, and the good news is that these expenses are 100% tax-deductible. Whether you’re investing in local advertising in Plano, social media campaigns for your business in Frisco, or billboard promotions across the Dallas area, you can write off these expenses.
For a more in-depth look at advertising and promotional tax deductions, check out our blog post on Deductible Expenses for Advertising and Promotion.
Professional Development Deduction
Investing in your knowledge pays off—and it’s tax-deductible. This includes online courses, workshops, business-related books, and memberships in professional organizations. Saving digital copies of receipts from training or conferences makes it easy to track these deductible expenses.
Software & Subscription Deductions
Running a business often requires various digital tools and software, which are fully deductible. Many small business owners use accounting software (QuickBooks, Xero), marketing tools (Canva, Mailchimp), and business productivity apps (Zoom, Dropbox) to streamline operations.
Regularly reviewing your subscriptions ensures you’re only paying for what you actually use.
Don’t Leave Money on the Table
Many business owners overlook these deductions, leaving money that could be reinvested into their business. By tracking expenses and leveraging every tax deduction available, you have potential to significantly lower your tax bill.
At Beckley & Associates PLLC, a trusted advisory, tax and accounting CPA firm in Plano, TX, we specialize in helping small business owners maximize deductions and minimize taxes. Whether you’re in Dallas, Fort Worth, Frisco, Plano or beyond, we’re here to help you navigate tax season with confidence.
Contact us today to discover how our local expertise can support your financial success.