Some of the Top Office Tax Deductible Expenses For Small Business

Even though many people think that claiming for a home office deduction is tantamount to inviting Internal Revenue Service Auditors, this need not be the case for a business that keeps proper records and adheres to the requirements of the law. The internal Revenue Service allows one to deduct specified office expenses from your income before calculating the taxes. In any busy office, you may lose track of the money you spend on the office. This means that you must have some categories in mind so that you can check the receipt, credit cards and checks to establish the expenses that can help you save money. This article looks at the top office deductible expenses you can claim..



The cost of supplies such as ink cartridges, desk calendars, paper and tape, cleaning materials, light bulbs, file folders and paper clips are some of the expenses the law allows you to deduct from your income before it is subjected to taxation. It is important that you keep the receipts from catalogs, office supply stores or any other outlet from which you purchase your office supplies. The full cost of such supplies should be deducted in full in the year the expenses were incurred.

Mortgage Interest or Rent

Any money spends on paying mortgage interest or rent for your office is deductible. If you have a home office, you need to calculate the percentage of the home you use as an office and estimate its rent or apportion some part of the interest you pay on mortgage as an office expense.


The cost of utilities such as natural gas, electricity, water bill, garbage and office telephone expenses must be deducted from your business income before the income is taxed. If you use your home as an expense, you need to estimate/calculate the amount that can be deducted as office expense based on the square foot of the home vis-à-vis the square foot covered by the office. A good example is where a man who owns 1000 square- foot house uses 200-square -foot as his office. A fifth of the expenses incurred on utilities in the house as well as rent or mortgage must be treated as an office expense and deducted accordingly.

Office Furniture

Section 179 of the tax codes provides that you can deduct the full cost of the office furniture as an expense before your income is subjected to taxation. Thus, the cost of desks, cubicle structures, chairs and filing cabinets should be deducted. This can be done by depreciating them using an acceptable method of depreciation and deducting the amount as an expense. Further, section 179 allows one to write off the full expense when it is incurred.

Computer Software

Under section 179, a businessman is free to write off the full cost of computers, computer accessories and software for your business. In some cases, computer repairs and the fee charged by the IT expert for setting up or trouble shooting the computer must be charged on the income before it is taxed. Other expenses incurred on items such as the scanners and the fax machines are also deducted.


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