1. Home Office Deduction

Do you regularly work from home? If so, you may qualify for the home office deduction, even if you also rent office space elsewhere. To qualify, the space must be used exclusively for business and it must be your principal place of business.

Deduction methods:

• Simplified: $5 per square foot, up to 300 sq ft.
• Actual expenses: Business-use percentage of utilities, rent, mortgage interest, property taxes, and more.

(home office tax write-off for small business owners)

2. Business Use of Personal Vehicle

If you use your personal car for business, deliveries, site visits, or client meetings, your mileage can be deductible. You may choose one of two methods; however, you must keep a log.

• Standard mileage rate: (2025 estimate) ~67¢ per mile.
• Actual cost method: Fuel, maintenance, insurance, depreciation, and repairs.

Must-have: a logbook or a mileage app like MileIQ. This write-off is often missed by realtors, contractors, consultants, and medical professionals.

Need help tracking? See our Bookkeeping Services for simple mileage and expense capture.

3. Equipment & Section 179 Deduction

Buying office furniture, computers, or machinery this year? You may deduct the full cost up front under Section 179. This can significantly improve cash flow, especially when equipment is essential to operations.

Commonly eligible items include:

• Laptops, cameras, and tablets
• Medical or dental equipment
• Office desks and chairs
• Business-use vehicles over 6,000 lbs (subject to IRS rules)

2025 limit: Up to $1,160,000 of qualified property. For official guidance, review the IRS Section 179 resources.

(Texas business equipment tax deduction)

4. Startup Costs

Launching a new LLC, S-Corp, or freelance venture in Texas? The IRS allows up to $5,000 of startup expenses in your first year. Track these carefully from day one so you don’t miss the deduction.

Eligible examples:

• Legal and CPA fees
• Website development and hosting
• Marketing and branding costs
• Business registration and formation fees

Many Houston entrepreneurs forget to categorize these properly, ask your CPA to set up clean accounts early.

5. Professional Development & Licensing

Continuing education, certifications, and industry licensing are typically deductible when they maintain or improve your current skills. Consequently, learning investments can reduce your tax bill and sharpen your edge.

Examples:

• CE for healthcare professionals
• Real estate license renewals
• Online courses for marketing, finance, or compliance
• Conferences and workshops

(Deductible CE expenses, license renewal tax deduction)

6. Business Meals & Client Entertainment

You can generally deduct 50% of business-related meals when meeting clients, vendors, or team members. To keep this deduction safe, document the purpose and attendees every time.

What qualifies:

• Meals during business meetings
• Restaurant discussions with prospects
• Takeout or catering for staff meetings

Not deductible: personal meals or social events unrelated to business goals. Save receipts and keep short notes right on the receipt or in your app.

7. Retirement Contributions

Self-employed or running a small business? You can create your own retirement plan and make tax-deductible contributions. These plans reduce taxable income and, at the same time, build long-term wealth.

• SEP IRA: up to 25% of compensation.
• Solo 401(k): employee + employer contributions (up to $69,000 combined in 2025).

Ask your CPA which plan fits best with your structure, LLC or S-Corp, so you maximize both savings and flexibility.

Bonus, Other Overlooked Deductions

• Business insurance premiums
• Bank fees and credit-card processing costs
• Advertising and social media boosts
• Website hosting and domain renewals
• Software subscriptions (QuickBooks, Canva, Zoom)

Individually these may seem small; however, together they add up, especially when your accountant categorizes them correctly.

Work With a CPA to Maximize Your Deductions

At Abbas Accounting & Tax, PLLC, we help Houston small business owners:

• Identify deductions specific to your industry
• Clean up bookkeeping to prevent IRS red flags
• Track vehicle, meals, and office deductions
• Plan proactively to reduce your tax burden all year

Explore our Tax Preparation Services and Entity Formation options.

Final Thoughts – Don’t Leave Money on the Table

Tax season shouldn’t be a surprise, and it shouldn’t cost more than it has to. From mileage to meals, most owners miss three to five deductions each year that could be claimed with a better process. Don’t wait until year-end; instead, document now, verify with a CPA, and stay IRS-compliant while remaining profitable.