Myth: You Can't Write That Off (Yes, You Can)

The Myth: “You Can’t Write Off / Deduct That”

If you’ve ever shared a potential write-off with a friend, relative, or even your accountant and heard “You can’t deduct that,” you’re not alone. Many small business owners are told they can’t write off certain expenses—when, in fact, they often can. These deduction myths not only create confusion, but they also lead to missed tax savings.

Why This Is Wrong

Tax deductions aren’t based on myths or gut feelings—they’re based on the IRS’s definition of “ordinary and necessary” business expenses. If an expense is:

• Common in your industry (ordinary), and

• Helpful for operating your business (necessary)...it’s usually deductible.

Let’s bust a few common myths:

• “You can’t write off your home office.” Yes, you can—if the space is used regularly and exclusively for business.

• “You can’t deduct meals.” Business meals are 50% deductible if they’re directly related to your business.

• “You can’t deduct clothing.” Regular clothes? No. But uniforms, protective gear, or branded apparel worn exclusively for work? Absolutely.

• “You can’t deduct startup costs.” Actually, you can deduct up to $5,000 in startup expenses in your first year (IRS Publication 535).

As Kiplinger notes, many owners overlook deductions like subscriptions, continuing education, and even a portion of their cell phone or internet bill—just because they don’t know better.

What You Should Understand Instead

The tax code is nuanced, but it’s also flexible for real-world business needs. What matters is:

• Intent: Was the purchase made for business?

• Documentation: Can you back it up with receipts and a clear business purpose?

• Consistency: Do you apply your rules evenly across expenses?

The IRS doesn’t require your business to look or operate like everyone else’s—but it does require records and logic.

How to Avoid Mistakes and Maximize Deductions

To avoid falling for deduction myths (and leaving money on the table), follow these steps:

1. Educate yourself on legitimate small business deductions—don’t rely on hearsay.

2. Track expenses in real time using accounting software or apps.

3. Document the business purpose of expenses, especially for things like travel, meals, or tech.

4. Review your return annually with a tax strategist who goes beyond basic compliance.

5. Get a second opinion if your tax preparer seems overly conservative or unsure.

Don’t let myths dictate your tax strategy. With the right knowledge and proactive planning, you can claim every dollar you’re legally entitled to—and avoid overpaying year after year.

Explore our tax advising services to uncover the deductions you're missing and build a smarter, audit-proof strategy.