As a sole proprietor, you can deduct many ordinary and necessary expenses that you incur in running your business. Here are some common types of business expenses you should be tracking:
Office expenses: Such as rent, utilities, supplies, postage, furniture, equipment, and maintenance
Travel expenses: May include airfare, lodging, meals, car rental, mileage, tolls, and parking
Entertainment expenses: May include meals and event tickets for clients
Advertising and marketing expenses: Such as websites, social media and online advertising, or offline advertising
Professional fees and services expenses: Whenever you pay for accounting, legal, consulting, and outsourcing fees
Insurance expenses: Typical insurance costs include liability, property, health, and disability insurance premiums
Taxes and license expenses: May include your income tax, self-employment tax, sales tax, property tax, and business licenses
Education expenses: Such as tuition, books, fees, supplies, and courses or seminars that improve your skills or knowledge in your field