Think It’s a Write-Off? Think Again — 5 Business Expenses You Can’t Deduct

Jul 22

As a small business owner, maximizing tax deductions is smart—but assuming everything you buy for your business is deductible can get you in trouble.

Some expenses may feel “business-related,” but the IRS doesn’t see it that way. Here are 5 common purchases that are NOT tax-deductible and could raise red flags:

1. Clothing That’s Not Uniform or Branded

Unless your clothing has a company logo or is a required uniform (like scrubs or safety gear), it’s NOT deductible—even if you wear it to a business meeting.
Example: A new blazer for networking events isn’t deductible. But a branded polo shirt with your business logo is.

2. Commuting to a Regular Office

Daily commuting costs—whether by car, bus, or train—aren’t deductible. Only mileage related to business appointments or travel outside your normal commute qualifies.
Example: Driving from home to your coworking space = not deductible. Driving to a client site = deductible.

3. Personal Meals or Entertainment

Lunch by yourself or grabbing a coffee without a client or work purpose doesn’t count. Also, entertainment like sporting events or concerts are no longer deductible—even if you take a client.
Example: Dinner with a friend isn’t a write-off, even if you talk about business.

4. Fines and Penalties

Parking tickets, late fees, or IRS penalties are NOT deductible. The government won’t reward bad behavior—no matter how stressful business can get.
Example: A late payment penalty from the IRS? Sorry, you’re on the hook for that one.

5. Gifts Over $25 Per Person

The IRS limits business gift deductions to $25 per recipient per year. Go over, and you won’t be able to deduct the extra.
Example: A $100 client gift basket? You can only deduct $25 of it.

Want to make sure your deductions are legit—and save more in taxes this year?
Schedule a free tax savings call with Dr. Bryan Raya, QuickBooks ProAdvisor:
https://calendly.com/dbr_bookkeeping/30-minute-zoom-consultation-call

Let’s start Doing Business Right!

FAQ: What Business Expenses Are Not Tax Deductible?

Can I deduct regular clothing for business use?
No. Only uniforms or branded apparel qualify.

Are daily commuting expenses tax-deductible?
No. Commutes from home to work are considered personal.

Are gifts to clients tax-deductible?
Yes, but only up to $25 per recipient per year.

Can I deduct parking tickets or IRS penalties?
No. Fines and penalties are never deductible.

#WhatIsNotTaxDeductible #BusinessExpenseLimits #SmallBusinessTaxHelp #IRSWriteOffRules #DBRBookkeeping #DoingBusinessRight #QuickBooksSupport #EntrepreneurTaxTips #ScheduleCHelp #TaxDeductionMyths

Bryan Raya