Self-employed persons may benefit from a variety of tax deductions for expenses directly related to the business. To qualify as deductible, claimed expenses must be deemed both ordinary (customary for the type of business) and necessary.
Small business owners and entrepreneurs may be able to deduct expenses associated with:
Office or retail space
Vehicles used for business purposes
Equipment and technology
Materials and supplies
Payroll
Business retirement plans, and more
If you borrowed money for business purposes, you can generally deduct interest paid on such loans, as well as taxes paid for the business. For any items acquired or used for both business and personal use, your tax deduction will be limited to the portion/percentage related to the business.