Top 3 Tax Deductions Business Owners Are Missing

For many business owners, tax season comes with stress — and often an unexpectedtax bill. In most cases, this isn’t because you’re doing anything wrong. It’s because

you’re not proactively planning.

Working closely with a tax professional to strategically reduce your tax liability is called

tax planning, and when done correctly, it can save you thousands of dollars each year. I regularly work with business owners to identify opportunities to legally minimize taxes,and during these planning sessions, I consistently see the same deductions being overlooked.

Here are the top three tax deductions business owners commonly miss:

1. Retirement Contributions for Business Owners

Many business owners assume retirement plans are only an “employee benefit,” but the

IRS allows business owners to make tax-advantaged retirement contributions as well.

Depending on the retirement plan you choose, you may be able to deduct contributions

and delay funding until after year-end — sometimes as late as the extended tax filing

deadline in October.

Common retirement options for business owners include:

Solo or Self-Directed 401(k)s

SEP IRAs

SIMPLE IRAs

Qualified retirement plans (such as EQRP® plans)

Each option offers different contribution limits and tax benefits, making it essential to

choose the plan that aligns with your income and business structure.

2. Health Savings Accounts (HSAs)

If you have a high-deductible health insurance plan, you may be eligible to contribute to

a Health Savings Account (HSA) — one of the most tax-efficient tools available.

HSAs offer a rare triple tax benefit:

Contributions are tax-deductible

Earnings grow tax-free

Withdrawals for qualified medical expenses are tax-free

Unused HSA balances roll over each year and can even be used as a supplemental

retirement resource later in life. For many business owners, this is an opportunity hiding

in plain sight.

3. Hidden Business Expenses

Many business owners pay for legitimate business expenses personally — and never

deduct them.

These “hidden” deductions often include:

Vehicle expenses and mileage for business use

Training, education, and professional development

Accounting and tax preparation fees

Because small business tax returns often flow through to a personal return, these

deductions are frequently overlooked — but they are still ordinary and necessary

business expenses and should be captured properly.

Don’t Leave Money on the Table

Working with a seasoned accountant can result in substantial tax savings. The

deductions above are just a few of the many opportunities business owners miss each

year.

If you want to stop dreading tax season and start planning ahead with confidence, I

invite you to schedule a free consultation. I’d love to help you uncover savings

opportunities and build a tax strategy that works for your business — not against it.