A Gainesville dentist called my office last month sounding stressed. He’d just gotten his tax bill from his previous accountant: $47,000. ‘Is this right?’ he asked me during our video call. ‘This seems high.’
I asked him to email me his return and bank statements. Within five minutes of reviewing the documents, I’d found over $12,000 in legitimate deductions his accountant had completely missed. Equipment purchases. Professional development. Even basic vehicle expenses. All sitting right there in his credit card statements, ignored.
Here’s the thing: the IRS doesn’t call you up and say, ‘Hey, you forgot to deduct your business vehicle!’ They’re perfectly happy if you overpay. It’s up to you to know what you can legally claim.
I started LMN Tax in 2015, and over the years, I’ve seen the same deductions get overlooked again and again. So let me walk you through the five that can make the biggest difference on your tax bill, and more importantly, how to claim them correctly without triggering an audit.
1. Section 179: Write Off Big Equipment Purchases This Year (Not Over Seven Years)
This is the deduction that surprises people the most. You buy a $25,000 piece of equipment for your business, and instead of depreciating it over seven years, you can deduct the entire amount this year. The whole thing. In one shot.
What qualifies for Section 179 in 2025:
- Machinery and equipment (restaurant ovens, dental chairs, HVAC tools)
- Computers, servers, and software
- Office furniture and fixtures
- Vehicles over 6,000 lbs gross weight (like work trucks and large SUVs)
- Certain building improvements (if you own the building)
The 2025 limit: $2,500,000. This limit was increased by the One Big Beautiful Bill Act in July 2025, up from $1.25 million. So unless you’re buying truly massive amounts of equipment, you’re nowhere near the cap.
Real example from my practice: A Woodbridge auto repair shop owner bought two vehicle lifts and a diagnostic computer system in December for $38,000 total. Instead of spreading that deduction over seven years, he used Section 179 and deducted the full $38,000 on his 2025 return. At his tax rate, that saved him about $9,500 in taxes. One purchase, one year, almost $10K back in his pocket.
The requirements (read these carefully):
- You must be profitable. Section 179 can’t create a loss. If you made $30,000 profit, you can only deduct $30,000 in Section 179.
- The equipment must be used more than 50% for business. If you buy a truck and use it half for personal errands, it doesn’t qualify.
- You must buy and place the equipment in service by December 31. Ordering it in December but not using it until January doesn’t count.
IRS Source: Publication 946 (How to Depreciate Property) and IRS.gov/section179
2. Home Office Deduction: It’s Not as Scary as People Think
I hear this constantly: ‘I work from home, but I’m afraid to claim the home office deduction because I heard it triggers audits.’
Let me be clear: the home office deduction does NOT automatically trigger an audit. What triggers audits is claiming it wrong. Like deducting your master bedroom when you only use the desk occasionally, or claiming 50% of your mortgage when your actual office is 8% of your house.
The rules are simple:
- The space must be used regularly and exclusively for business (a desk in the corner of your bedroom where you also sleep doesn’t count)
- It must be your principal place of business (if you have an office elsewhere, this gets complicated)
- It doesn’t have to be a separate room. A dedicated desk area in a spare room counts.
Two ways to calculate it:
Simplified method: $5 per square foot, up to 300 square feet. If your home office is 200 square feet, you deduct $1,000. Done. No tracking utilities or figuring out percentages.
Actual expense method: Calculate what percentage of your home is used for business, then deduct that percentage of your mortgage interest (or rent), utilities, insurance, repairs, and depreciation. More paperwork, but potentially a bigger deduction if your home costs are high.
Real example: A Rockville consultant who works from home has a 180-square-foot office in his 1,800-square-foot townhouse. That’s 10% of his home. His annual housing expenses total $28,000 (mortgage interest, property tax, utilities, insurance, HOA fees). His home office deduction using the actual expense method: $2,800. Using the simplified method: only $900. He chose the actual method and saved an extra $725 in taxes.
IRS Source: Publication 587 (Business Use of Your Home)
3. Vehicle Expenses: Stop Guessing, Start Tracking
If you drive for your business, this deduction can be huge. But I see two problems constantly: people either don’t track their mileage at all, or they track it wrong.
First, what doesn’t count:
- Your daily commute from home to your regular office or workplace. That’s personal, not deductible.
What does count:
- Driving to meet clients or customers
- Business errands (bank, post office, picking up supplies)
- Driving between job sites or work locations
- Travel to temporary work sites (if you have a regular office, driving to other locations counts)
- If your home office is your principal place of business, ALL business driving counts (including to clients)
The 2025 standard mileage rate is 70 cents per mile. That’s up from 67 cents in 2024. Every business mile you drive is worth 70 cents as a deduction.
Real example: A Haymarket real estate agent drives about 1,500 miles per month showing properties, meeting clients, and checking on listings in Gainesville, Bristow, and Manassas. That’s 18,000 business miles per year. At 70 cents per mile, that’s a $12,600 deduction. At a 25% tax rate, that’s over $3,000 saved on taxes just from tracking mileage.
How to track it without losing your mind:
Forget paper logs. Use an app like MileIQ, Everlance, or even just your phone’s notes app. Record the date, starting location, ending location, miles driven, and business purpose. The IRS wants contemporaneous records, meaning you document it when it happens, not months later when you’re trying to remember.
And please, for the love of all that is holy, don’t just make up a number in April. The IRS has gotten very good at spotting fake mileage logs. If they audit you and you can’t produce actual records, they’ll disallow the entire deduction.
IRS Source: Publication 463 (Travel, Gift, and Car Expenses) and Revenue Procedure 2024-40 (2025 mileage rates)
4. Retirement Contributions: Save Your Future AND Your Taxes Today
Here’s what blows people’s minds when I tell them: retirement contributions aren’t just savings. They’re one of the most powerful tax deductions you have access to. And the limits are way higher than most small business owners realize.
Your options for 2025:
Solo 401(k): If it’s just you (or you and your spouse), this is usually your best bet. You can contribute up to $23,500 as an employee. Then, as the employer, you can contribute up to 25% of your compensation. If you’re 50 or older, you get an extra $7,500 catch-up contribution. Total potential contribution: over $70,000 depending on your income.
SEP IRA: Simpler to set up than a Solo 401(k). You can contribute up to 25% of your net self-employment income, maxing out at $70,000 for 2025. Great if you want something straightforward.
SIMPLE IRA: Good if you have employees. Lower limits ($16,500 for 2025, plus $3,500 catch-up if you’re 50 or older), but easier to administer when you have staff.
Real example: A Bethesda IT consultant made $140,000 in net self-employment income in 2025. He maxed out a SEP IRA contribution of $35,000 (25% of $140,000). That knocked his taxable income down to $105,000, saving him roughly $8,750 in federal taxes. And he’s building retirement savings at the same time.
The deadline most people don’t know about: You have until your tax filing deadline (including extensions) to make retirement contributions for the previous year. So you could set up and fund a SEP IRA as late as October 15, 2026 and still deduct it on your 2025 return. This is a lifesaver if you get to April and realize you owe more than you expected.
At LMN Tax, we can help you figure out which retirement plan makes sense for your situation and refer you to trusted financial advisors who can set it up. It’s not one-size-fits-all, and getting it wrong can cost you thousands.
IRS Source: Publication 560 (Retirement Plans for Small Business)
5. Health Insurance Premiums: The Deduction Self-Employed People Forget
I see this constantly. Self-employed people pay $800, $1,200, even $2,000 a month for health insurance and never realize they can deduct it. Not as a business expense, but as an adjustment to income on the front page of your tax return (Form 1040, Schedule 1).
Who qualifies:
- You’re self-employed (sole proprietor, partner, LLC member, or S-Corp owner with more than 2% ownership)
- You have a net profit for the year
- You’re not eligible for an employer-sponsored plan through your spouse’s job (or you choose not to use it)
What you can deduct:
- Medical insurance premiums (ACA marketplace plans, private insurance, whatever you have)
- Dental insurance
- Long-term care insurance (with limits based on age)
- Premiums for your spouse and dependents
Real example: A 7-Eleven franchise owner in Manassas pays $1,450 per month for family health insurance through the marketplace. That’s $17,400 per year, fully deductible as an adjustment to income. This reduces both her income tax and her self-employment tax. At a 30% combined tax rate, she saves over $5,200 just from this one deduction.
The one limitation you need to know: You can’t deduct more than your net self-employment income. So if you only made $12,000 profit but paid $17,400 in premiums, you can only deduct $12,000. The rest doesn’t carry over.
IRS Source: Publication 535, page 7 (Self-Employed Health Insurance Deduction)
Key 2026 Meal Deduction Changes (One Big Beautiful Bill Act)
If you’ve been deducting meals for your business, pay attention. The rules are changing in 2026, and if you’re not careful, you could be claiming deductions you’re no longer entitled to.
What’s changing:
- Employee meals at restaurants:Currently 100% deductible through the end of 2025. Starting January 1, 2026, they revert back to 50% deductible.
- Snacking and vending machine food:Starting in 2026, these become 0% deductible. If you’re buying snacks for the office or loading up the vending machine, you won’t be able to deduct it anymore.
- Client and business meals:Still 50% deductible (this hasn’t changed).
Real example: A Fairfax restaurant owner provides free employee meals during shifts. In 2025, she can deduct 100% of the cost. In 2026, that drops to 50%. If she spends $24,000 on employee meals in 2026, she can only deduct $12,000 instead of the full amount. That’s a $3,000 difference at a 25% tax rate.
My advice: if you’re buying meals for employees or stocking the office with snacks, do it in 2025 while you can still get the full deduction. Come January 1, 2026, the rules change.
IRS Source: One Big Beautiful Bill Act (OBBBA), Section 274 changes
What About All the Little Stuff?
People ask me this all the time: ‘Do I really need to track my $12.99 monthly software subscription? Is it worth it?’
Yes. Absolutely. Here’s why: a $12.99 subscription is $155.88 per year. If you have ten subscriptions like that (Zoom, Adobe, website hosting, email marketing, etc.), that’s $1,558.80 in deductions. At a 25% tax rate, that’s almost $400 back in your pocket.
Track these small recurring expenses:
- Software subscriptions (anything you use for business)
- Professional memberships (Chamber of Commerce, industry associations)
- Continuing education (online courses, certifications, conferences)
- Bank fees and credit card processing fees
- Office supplies (even if it’s just printer ink and paper)
And please, categorize expenses when you spend them, not in April when you’re trying to file your taxes. Your bank statement and credit card transactions show every purchase, but they don’t tell you which ones are deductible. That’s on you to track. At LMN Tax, we offer bookkeeping services specifically to help business owners track this throughout the year instead of scrambling at tax time.
My Advice After Running LMN Tax Since 2015
Separate your business and personal expenses. Get a business bank account. Get a business credit card. Stop mixing personal and business spending on the same card. I can’t tell you how many times I’ve had to comb through someone’s personal Visa statement trying to figure out which charges were business meals and which were family dinners. It’s a nightmare for both of us.
Document everything contemporaneously. The IRS’s favorite word is ‘contemporaneous.’ It means you record something when it happens, not months later. Save your online bank statements. Screenshot your mileage app. Keep digital copies of invoices. If you ever get audited, the IRS will ask for proof. ‘I think I drove about 10,000 miles’ isn’t going to cut it.
Don’t be afraid to ask for help. Tax law changes every single year. I look things up constantly. If you’re not sure about a deduction, ask a professional. At LMN Tax, we work with clients all over Northern Virginia and beyond (we’re a digital-first firm, so location doesn’t matter). A consultation costs way less than an audit, and it definitely costs less than overpaying your taxes year after year.
Think You’re Missing Deductions?
The deductions I covered are just the start. Depending on your industry, there could be dozens more. Restaurant owners can deduct FICA tip credits. Car dealerships can write off floor plan interest. Real estate agents can claim the QBI deduction. 7-Eleven franchises have sales tax considerations. The list goes on.
At LMN Tax, we work with Northern Virginia business owners in every industry you can imagine. From Uber drivers to doctors with multiple practices in Gainesville and Haymarket, from 7-Eleven franchises to Bristow tech consultants commuting to DC. We’re a digital-first firm, so we work with clients nationwide (New York, Florida, Texas, California, and even some working outside the USA). Our Manassas office is available by appointment if you prefer to meet in person.
Call us at (571) 326-7900 or schedule a consultation at lmntax.com. We’ll review your business, identify deductions you’re missing, and help you keep more of what you earn. And if you need bookkeeping or payroll services to make tax time easier, we handle that too.
IRS Resources & References
- Section 179:https://www.irs.gov/publications/p946
- Home Office:https://www.irs.gov/publications/p587
- Vehicle Expenses:https://www.irs.gov/publications/p463
- Retirement Plans:https://www.irs.gov/publications/p560
- Self-Employed Health Insurance:https://www.irs.gov/publications/p535
- 2025 Mileage Rates:https://www.irs.gov/pub/irs-drop/rp-24-40.pdf