When it comes to filing taxes, most small business owners are focused on the big numbers, revenue, payroll, and major expenses. But what often gets overlooked are the smaller, less obvious deductions that can add up to significant savings. The reality is, many businesses are leaving money on the table simply because they’re unaware of what they’re allowed to deduct.

At Tavola Group, we’ve worked with hundreds of small businesses across industries, and we consistently see clients missing out on key deductions that could help reduce their overall tax liability. Understanding and properly documenting these often-overlooked deductions can make a meaningful difference in your bottom line.

Here are 10 overlooked tax deductions for small businesses, and how to make sure you’re not missing out on valuable savings.

1. Home Office Deduction

If you run your business from home, even partially, you may qualify for the home office deduction. This applies whether you’re self-employed full-time or running a side hustle in the evenings. To qualify, the space must be used regularly and exclusively for business. It doesn’t need to be an entire room, but it must be a clearly defined space. You can deduct a portion of your mortgage or rent, utilities, internet, and even repairs based on the percentage of your home used for business.

Many small business owners overlook this because they think it’s too complicated or assume they don’t qualify. But in 2025, the simplified method makes this deduction more accessible than ever.

 

2. Business Use of Your Vehicle

Do you drive your personal car for business purposes? If so, you may be eligible to deduct mileage, gas, maintenance, insurance, and even depreciation.

You have two options, the standard mileage rate or actual expenses. The standard mileage rate for 2025 is updated annually by the IRS and is often easier to calculate. You’ll need to keep detailed records of your business-related trips, so mileage tracking apps can be a huge help here.

This deduction is frequently missed because people forget to separate personal and business travel or don’t maintain the necessary documentation.

 

3. Continuing Education and Training

Courses, webinars, certifications, or any kind of professional development that helps you maintain or improve skills related to your business are deductible. This includes not just the course fee, but also materials, travel, and lodging if applicable.

Whether you’re attending a virtual seminar or an in-person conference, these expenses can add up. We often see business owners pay out of pocket for professional growth without realizing these costs are tax-deductible.

 

4. Subscriptions and Memberships

If you subscribe to industry journals, trade magazines, professional newsletters, or business-related content platforms, those costs can be written off. Membership dues for professional organizations or networking groups are also typically deductible.

Just be sure the subscriptions are directly related to your business. For example, a marketing consultant subscribing to digital marketing reports or a real estate investor subscribing to a market analytics tool would both qualify.

 

5. Software and Digital Tools

In today’s business world, software is essential. Whether you use accounting tools, CRMs, project management platforms, or design apps, these are considered necessary business expenses.

Monthly or annual fees for cloud-based software, website hosting, online storage, and even tools like Canva or Zoom are all deductible. We find this category is often missed because owners sign up for tools and forget to categorize them as deductible.

 

6. Bank Fees and Payment Processing Charges

Fees from your business bank account, credit card, PayPal, Stripe, Square, or any other payment processor are deductible business expenses.

While each transaction fee may seem small, they accumulate quickly, especially for businesses with high transaction volume. Be sure to track these costs and include them in your tax filings.

 

7. Business Insurance

Insurance premiums you pay to protect your business are deductible. This includes general liability, professional liability, commercial property insurance, and even cyber liability coverage.

If you’re working with contractors, you may also have policies covering worker’s comp or errors and omissions. These necessary protections are not just good business, they’re also tax-deductible.

 

8. Depreciation of Assets

Any large purchases that benefit your business for more than one year, think equipment, furniture, or technology, can often be depreciated over time.

Depreciation allows you to deduct a portion of the asset’s value each year, reducing your taxable income annually. In some cases, Section 179 or bonus depreciation rules may allow you to write off the entire cost in the year of purchase.

We often help clients strategize the timing of these purchases to make the most of depreciation rules.

 

9. Meals with Clients or Employees

Business meals are still a viable deduction, though the rules have tightened. In 2025, meals are 50% deductible when they’re directly related to your business, such as client lunches, team meetings, or meals during business travel.

What’s important is documentation. You’ll need to note who was present, the business purpose, and retain the receipt. Apps that integrate with your accounting software make this much easier.

 

10. Marketing and Advertising

Every dollar you spend promoting your business is deductible. That includes social media ads, Google Ads, printed materials, event sponsorships, promotional items, and even your website.

This category also includes the cost of branding consultants, graphic designers, marketing platforms, and photographers, expenses that are often overlooked or lumped into general services.

In our experience, small business owners frequently underreport marketing spend simply because they don’t categorize these costs properly.

 

Start Thinking Like a Tax-Smart Business Owner

Tax season doesn’t have to be stressful, and it definitely shouldn’t be a time when you find out you missed opportunities to save. The deductions listed above may seem minor individually, but together they can significantly reduce your taxable income and free up cash for reinvestment or savings.

Being proactive, keeping detailed records, and understanding what qualifies as a business expense is the key to unlocking these benefits. At Tavola Group, we work with small business owners all year long to ensure no deduction is left behind. But more importantly, we help our clients think strategically, not just about tax season, but about the bigger picture of growing a financially healthy business.

Whether you’re filing your first return or ready to upgrade from years of DIY tax prep, it’s never too late to start thinking like a tax-savvy business owner. If you’re looking for expert guidance and full-service support, we’re here to help, reach out to Tavola Group today.