FAQ: Can I Deduct That?

Can I Deduct That?

Yes—if the expense is ordinary and necessary for your business, it’s likely deductible. According to the IRS, an ordinary expense is common in your industry, and a necessary expense is helpful or appropriate for your business operations. So before you assume the answer is “no,” it’s worth checking the rules—or asking an advisor who understands them.

Why This Question Matters

“Can I deduct that?” is one of the most frequent and misunderstood questions small business owners ask. And for good reason: the line between business and personal can get blurry.

Misunderstanding deductibility rules can lead to:

• Missed tax savings

• Higher audit risk

• Poor recordkeeping habits

• Costly year-end surprises

Knowing what qualifies—and what doesn’t—helps you make smarter spending decisions and avoid issues down the road.

Related Questions Clients Often Ask

Q: Can I deduct my phone and internet? Yes, but only the portion used for business. Track usage or estimate a percentage if split with personal use.

Q: What about meals? Business meals are generally 50% deductible if there’s a valid business purpose. Keep the receipt and note who you met with.

Q: Can I deduct travel? Yes, if the primary purpose of the trip is business. You can deduct airfare, lodging, meals, and mileage—but personal side trips aren’t deductible.

Q: Is my home office deductible? If the space is used regularly and exclusively for business, yes. You can use the simplified method or calculate actual expenses.

Q: What if I bought a course, app, or membership? If it directly supports your business—like software, education, or a professional organization—it's likely deductible.

Actionable Tips to Handle Deductibility Questions

• Keep records and receipts—including the business purpose of each expense

• Use accounting software or apps to categorize expenses as you go

• When in doubt, ask—a second opinion from a tax advisor can confirm gray areas

• Don’t mix personal and business—use a separate business account and card

• Review expenses quarterly to catch missed deductions and flag risky write-offs

  
  

Final Thought

The rules around business deductions aren’t always black and white—but they’re not mysterious either. If you have clear intent, reasonable documentation, and sound judgment, you’re probably on solid ground. When you’re unsure, don’t guess—ask.

Our tax advising services are designed to answer these kinds of deductibility questions and help you build a smart, legal, and audit-ready tax strategy year-round.