What if I buy used equipment?

You can still deduct it. Used or new, the rules are the same.

Can I deduct my home office if I rent?

Yes. You can deduct a percentage of your rent or other expenses — ownership doesn't matter.

Do I need to file special forms?

Most deductions go on Schedule C if you're self-employed. Talk to an accountant to be sure.

Can my spouse deduct their business expenses?

If they have their own business, yes. If it's jointly owned, you both can deduct from it.

Is there a limit to how much I can deduct?

Most deductions are limited only by your business income — you can't deduct more than you made.

Business Expenses 101

A beginner's guide to saving money on your taxes.

What's a business expense?

A business expense is money you spend to run your business. When you report these expenses on your taxes, you pay less in taxes. Many new business owners miss thousands of dollars in deductions simply because they don't know what counts.

The basic rule: if you spent money to help your business make money, it can probably be deducted.

Vehicle & mileage

If you use your car for business, you can deduct the cost — two ways:

1Standard mileage rate (simpler)

Track your business miles. In 2026 the IRS allows 72.5¢ per mile. All you need is a simple mileage log.
Example: 10,000 business miles = $7,250 deduction.

2Actual expenses (more detailed)

Keep receipts for gas, maintenance, insurance and repairs. Add them up and deduct only the business portion.
Example: $3,000 of car costs with 80% business use = $2,400 deduction.

Tip: the mileage method is usually easier for most drivers.

Equipment & office setup

Buying a computer, printer, furniture or machinery for your business? You can deduct it.

1Deduct the full cost now

Buy a $1,200 laptop, deduct all $1,200 this year (up to $2,560,000 of equipment per year).

2Spread the cost over time

Deduct a smaller amount each year (depreciation). More complicated, but sometimes better for big purchases.

Tip: for most small business owners, deducting the full cost immediately is simpler and saves more.

Home office

If you have a dedicated space at home where you work, you may be able to deduct expenses. The space must be used only for work — a guest room that doubles as an office doesn't qualify.

1Simple method

Office square footage × $5 (max $1,500). Example: 200 sq ft × $5 = $1,000 deduction.

2Actual expenses

Deduct the office's share of rent/mortgage, utilities and insurance. Example: 200 sq ft in a 2,000 sq ft home = 10% of home expenses.

Tip: the simple method is easier, but actual expenses often gives a larger deduction.

Meals & entertainment

Meals: 50% deductible. Take a client to lunch and discuss business, deduct half. A $100 lunch = $50 deduction. Write down the date, amount, who was there and what you discussed.

Entertainment: not deductible. Sporting events, golf and theater don't count — even with clients.

Professional services & software

Often overlooked, easy to deduct, and with no limits:

Accountant fees (tax prep, bookkeeping)
Lawyer fees (contracts, business advice)
Software subscriptions (Quicken, Canva, Slack)
Advertising (Google Ads, Facebook, business cards)
Website hosting and domain names
Freelancers and contractors you hire

Training & education

Deductible: industry courses, conferences and seminars, professional certifications, business books, and coaching related to your business.

Not deductible: education that prepares you for a new career.

Quick deduction checklist

Business mileage

72.5¢ per mile

Equipment

Full cost, up to limit

Home office

If used only for work

Business meals

Only w/ business discussion

Accounting / legal

Business-related only

Software subscriptions

No limits

Training courses

Business-related only

Entertainment (golf, sports)

Never deductible

Keeping records (the critical part)

Documentation matters most. If the IRS questions your deductions, receipts and records are your proof.

For every expense keep:

The amount
The date
What it was for (business purpose)
A receipt — paper, photo or digital

For meals also record:

Who attended
Their business relationship to you
What you discussed

Mileage: keep a log with date, destination, miles and purpose — that's exactly what the GigHack tracker does.

Keep everything for at least 3 years after you file.

Common questions

Final thoughts

The goal is simple: deduct legitimate business expenses to reduce your taxes. Keep good records, and when in doubt ask an accountant. Start tracking now and you'll save significantly.

Educational information only — not tax advice. Confirm your situation with a licensed tax professional.