The Most Overlooked Tax Deductions for Phoenix Small Business Owners

Running a business in Phoenix comes with its share of perks—sunshine, a growing economy, and a supportive small business community. But if you’re not keeping a close eye on your expenses, you could be missing out on valuable tax deductions that directly impact your bottom line. At Copperhead Financial, we help business owners uncover often-overlooked write-offs that can make a real difference come tax time.

Here are a few deductions you don’t want to miss:

1. Home Office Deduction: If you run your business from home—even part-time—you may qualify for a home office deduction. That includes a portion of your rent or mortgage, utilities, internet, and even repairs. Just make sure the space is used exclusively for business.

2. Business Use of Your Vehicle: Whether you’re meeting clients in Scottsdale or making deliveries around Phoenix, tracking business mileage is essential. You can deduct either the standard mileage rate or actual expenses, whichever benefits you more. (Pro tip: see our blog on how to track your gas mileage.)

3. Continuing Education: Taking courses to sharpen your business skills? Webinars, conferences, and industry-specific training are all potentially deductible if they relate directly to your business.

4. Phone and Internet Bills: If you use your phone and internet for business, a percentage of those bills can be written off. Just make sure you keep good records to justify the split between business and personal use.

5. Meals and Entertainment: Grabbing coffee with a client? That meal may be 50% deductible. If it's a company event or staff appreciation meal, the deduction could be even higher. Don’t forget to document who you met with and the purpose of the meeting.

Get the Most Out of Your Deductions: The rules around deductions can be complex—and they change often. Working with a local Phoenix bookkeeper like Copperhead Financial ensures you don’t miss a thing. We help businesses stay compliant, organized, and more profitable.