It’s a Write Off, Right?! Tax Deductions for Small Business Owners

In this episode of Disrupt Your Money, we call BS on the idea that “it’s all a write-off, right?” and actually walk through what does and doesn’t count as a legit tax deduction for small business owners. Meg breaks down key write-offs in plain language so you can stop guessing, stop leaving money on the table, and start using the tax code to your advantage instead of just fearing it.

Framed through a liberation lens, she talks about why tax knowledge is a form of self-defense—especially under a new administration that’s more likely to prioritize big corporations and the wealthy than marginalized business owners. This isn’t a dry tax seminar; it’s about reclaiming resources in a system that wasn’t built for you and using every legal deduction you’re entitled to.

You’ll leave with both practical, actionable tax ideas and a reminder that your financial strategy is deeply political.

⏱️ In This Episode:
00:00 Introduction: Why tax deductions are a tool of resistance
01:57 Home office deduction: what actually counts as “exclusive use”
03:04 Self-employment tax
03:27 Business meals that actually qualify as write-offs
04:04 Education & training
04:38 Health insurance premiums as a major deduction for self-employed and marginalized business owners
05:14 Software, subscriptions & your website as “ordinary and necessary” business expenses
05:57 Retirement contributions (Solo 401(k), SEP IRA) as a double-win
06:54 The golden rule of deductions
07:17 Why you should care: the financial inequities facing trans communities
09:08 Book spotlight: Invisible Women by Caroline Criado Perez
11:01 Money Mindset with Justine Nelson (Debt Free Millennials)
12:20 Listener Q&A

🔗 Mentioned in This Episode:

👉 Invisible Women: Data Bias in a World Designed for Men by Caroline Criado Perez featured in Meg’s book review; grab it via her reading hub at EquitableMoneyProject.com/read

👉 Debt Free Millennials with Justine Nelson

👉 Call Your Representatives – Meg’s weekly Substack with scripts to contact your lawmakers

👉 Submit your listener question for a future episode → https://disruptyourmoney.com

💬 Connect with Us:
🌐 Website → https://equitablemoneyproject.com
📸 Instagram → https://instagram.com/equitablemoneyproject
🎧 Podcast → https://equitablemoneyproject.com/podcast

🚀 Your Next Step:
Ready to make your money match your values? Download our free Wealth is Resistance Action Kit → https://equitablemoneyproject.com/kit

Transcript

SPEAKER_00 0:07

Well, hey there, I'm Meg Wheeler, CPA, entrepreneur, and political activist, and you're listening to Disrupt Your Money, the podcast that's pursuing liberation through financial education. Let's face it, our economy and financial institutions weren't built to support the majority of us. So if we're going to achieve financial equity and justice for all, we've got to build our own. This is not your accountant's boring tax seminar. I promise you. We're gonna dive into the best tax deductions for small business owners today, and I'm going to keep it light, I promise. Now, here's the thing about taxes: they're not just about paying Uncle Sam, they're about taking back what's yours. And if you're a marginalized business owner, we know the system wasn't built with you in mind. So we're going to arm you with knowledge today to keep more of that hard-earned money in your pocket. And this feels especially important in the wake of everything that's going on in the world. By the time this episode drops, we'll have a new presidential administration and all of the uncertainty that that brings with it. I know this is a scary time for folks. There are a lot of ways that we can arm ourselves to protect our rights, our freedoms, justice, and equity. We're going to keep talking about all of these here on Disrupt Your Money, as well as over in our Equitable Money Project community. Make sure to follow us on Instagram and hop on our email list to stay up to date with actions that you can take and how you can get involved. But today, we're going to drill down on one topic because having more money in your pocket is one way to protect yourself from tyranny and injustice. Having money gives you options. Okay, let's kick things off with the big one, home office deduction. If you're working from home, and let's be real, most of us service-based and digital product entrepreneurs are, then this one is for you. The IRS says if you have a dedicated space in your home used exclusively for your business, you can write off a portion of your rent, utilities, and even your internet. But here's the kicker, it has to be exclusive. So you can't count working from your kitchen table or you know, sitting on your living room sofa. That's not gonna fly. Now think of this deduction as your treat yourself moment. Create a space where you can focus on your brilliance and let the tax savings roll in. What I mean by that is even if you don't have an entire room that can be your home office, find a space in your home that you can dedicate exclusively to your work. Even if it's just a corner of a room, make it your space. And once you've done that, then you'll be set up to be able to take this deduction. And promise me this: don't worry about the audit boogeyman. As long as you follow what I'm telling you to do here, and as long as you're being legit, then you're good. Now, next up is a self-employment tax deduction. If you're self-employed, you're paying both the employer and the employee sides of Social Security and Medicare. Yes, it's as unfair as it sounds, but the good news is that you can deduct half of those taxes, essentially the employer portion. Think of it as a tiny consolation prize for being your own boss. The math might be a little annoying, but I promise you this deduction adds up. Now let's talk about business meals. This one's not just for the corporate bigwigs who are eating steak dinners. If you're meeting a client or a collaborator or your business bestie over coffee or lunch and you're talking about business, then you can deduct 50% of that bill. Yes, this includes your latte addiction, as long as you're talking shop. Now here's a pro tip: keep those receipts. Snap a photo, store it in a folder, and jot down who you met with and why and what you talked about. That way, if the IRS ever asks, you'll be ready. And hey, if you're like me and think brunch is the superior meal, make those mimosas work for your taxes. All right, time for a fan favorite: education and training. If you bought an online course, if you attended a virtual conference, or you invested in a coaching program, this is most likely a tax deduction. If it helps you grow your business, it counts typically. Now, this one is especially important for marginalized business owners because let's face it, access to knowledge is power. And for many of us, we didn't grow up with the education that a lot of other folks have in terms of how to grow your business. So we have to go out and pay for it. So go ahead, take that course on marketing and let your taxes fit part of that bill. Now let's disrupt one of the biggest missed opportunities: health insurance premiums. If you're self-employed and you're not eligible for a health insurance plan through another workplace or through your spouse, then you can deduct your premiums typically. Health insurance is a major expense, especially for marginalized folks who often face systemic barriers and accessing affordable care. So this deduction can be a huge benefit and can help ease that burden a bit. And here's a reminder: taking care of your health isn't just good for you, it's good for your business, it's good for your family, and it's good for your community. Remember, you can't change the world if you're running on empty. Now, another deduction I love is an easy one: software and subscriptions. So if you're running a service-based business like I am, or a digital product-based business, you probably are using tools like Canva or Zoom or Spotify or an email service provider or a website. All of those are potentially deductible. The IRS calls these ordinary and necessary expenses. And as far as I'm concerned, Canva Pro is definitely necessary, especially for our team. Don't forget also about your website expenses. Everything from hosting costs to domain fees, and even that fancy WordPress template that you splurged on, all of that is most likely deductible. Your online presence is essentially your storefront. So let's make a tax advantage. Last but not least, let's talk about retirement contributions. Now I could do an entire episode, probably many, on retirement contributions, and I'm not going to get into all of the details today. But I will say this: if you're a small business owner, you can set up a solo 401k or a SEPIRA and contribute pre-tax dollars to those accounts. What does this mean? It means you're saving for your future and lowering your tax bill. That's a win-win. Note that there are special rules on exactly how much you can contribute each year, how to actually make those contributions, and all of that. So make sure to work with your tax advisor before you actually invest those dollars. Retirement contributions are an especially powerful tool that I absolutely love for marginalized business owners who might not have traditional safety nets. Because remember, building wealth isn't just about today, it's about creating a future where you're in control. All right, friends, before we wrap up this part of our show today, here is my golden rule about tax deductions. Document everything. Keep receipts, track expenses. And if you're not already using bookkeeping software, absolutely get on it. Remember, deductions are not loopholes or cheats. The IRS has specific allowances for deductions. And so it's the expectation that you will take these. They are your right as a business owner. Do not leave money on the table. Now I want to turn to one of my favorite parts of the show, why you should care. In this segment, I share with you a sobering statistic to quantify the impact financial inequity is having and motivate you to disrupt your money. While I've shared a lot about the financial inequities for women and people of color, I haven't said too much about the inequities for trans people. And the simple reason is we just don't have the data. And let's be honest, this is going to be even more unlikely that we're going to have the data under the current administration. Trans people have been mostly ignored by the government and researchers, so we just don't know the extent to which they face financial inequity. But organizations that support the trans community have anecdotally done this work, and not surprisingly, the reality is soberingly grim. So what we do know from talking directly to communities affected is that trans people face higher unemployment, higher poverty, pervasive discrimination, and a complete lack of legal protections. And that's only getting worse. We know that trans people have a harder time finding safe and affordable housing, that they're often limited in achieving education because of hostile and unwelcoming school environments, and that they have higher medical costs. But we don't need a study or fancy data to know that the trans community is suffering. And again, especially now, and we know it's gonna get worse. In our fight for financial equity, we cannot leave them behind. Every single human, regardless of who or what they are, deserves at a minimum basic needs housing, healthcare, food, safety, education. Our trans community is excluded from these, and we've got to do something about it. So are you pissed off yet? Alright, now I want to turn to our book review. You know probably by now that I'm a huge reader, so this is one of my favorite parts of the show. In this segment, I share with you my favorite financial reads, and today's book is Invisible Women: Data Bias in a World Designed for Men by Caroline Criado Perez. And I particularly love this book because we just talked about how the trans community, there isn't enough research and data around uh how our current economy and policies are affecting them, right? And this book is talking all about data and data bias. Now, if you know me at all, you know I am a sucker for data, numbers girl. Given that this book is my absolute dream. In Invisible Women, Caroline explores the pervasive gender bias that is embedded in data and walks through how a male-centric perspective has shaped everything from urban planning and medical research to technology in the workplace, resulting in systemic inequalities and completely overlooking the needs of women. Now, this book will make you very mad and riled up, hopefully, as the author exposes the consequences of data gaps and serves as a call to action to reevaluate how we collect data and design systems to account for the diverse experiences of individuals. And while this book focuses specifically on gender, it's not hard to imagine how these inequities expand to other marginalized folks. And I just want to say, in the light of everything that is happening in the world and the new administration and the complete stripping away of the research and the history that our government does and documents, it's ever more important now that we are paying attention to the collection of data and demanding the collection of data and demanding that it be done in a way that is uh removing those biases that are harming so many folks. So if you want to grab your copy of Invisible Women, you can do that by supporting uh local bookstores and us by going to equitablemoneyproject.com forward slash read. All right, it's time for a little money mindset. Now, each episode I like to share with you the best and most inspirational money mindset tips that I've found, courtesy of other small business owners. Today's money mindset is from financial content creator Justine Nelson. Now, if you've been feeling guilty about spending your money, I want you to listen up. Justine said this magical message on Instagram recently. Quote, yes, you can spend on things you love and reach your financial goals too. I like to use a budget to accomplish all my financial tasks: spending, saving, paying down debt, and investing. Look at it this way: a budget is a tool that gives me choice with my money. When I was younger, I thought budgets were controlling, restricting, and depriving me of what I truly wanted. Once I reframed my mindset about budgeting, I got really excited about what I could do with my money, and it got me to spend on all my guilty pleasures, including traveling to Puerto Rico, Colorado, Florida, and California while I was in debt and paid for each trip in cash. End quote. Y'all know we like a good budget and we like some good travel, or as we call them in our world, we call budgets money plans. So I want you to take this as your permission slip to spend on the things that you love and value, provided you've got a good plan. And don't forget to follow Justine at debt-free millennials underscore. Now let's move on to our listener questions. This week's listener question is from Emily. Emily asks, how can small business owners protect themselves financially if there are new tax laws or regulations that favor larger corporations after the 2024 election? What a great question. Because we know the reality is there are most likely going to be. This new administration almost certainly will be prioritizing the needs and benefiting larger corporations and wealthy individuals. So let's dive into this. Well, the first step is to stay informed. Now, I say this with a bit of a hesitation because I know that especially with this new administration, there's going to be a lot of nonsense thrown at us. And I don't want folks getting so overwhelmed that they are moved into inaction. So when I say stay informed, do it in a way that is still healthy for you and has boundaries on your time and your mental and physical health. But you do need to stay informed. Changes in tax laws and other policies often take time to implement. So you'll need to keep up to date on proposals that are put out there and new legislation. Because remember, just because something is thrown out there by a representative or it's sent out as a proposal doesn't mean it's actually going to pass. So you need to make sure you're understanding what's happening to these potential changes. I recommend that you follow trusted financial news outlets and consult with your tax advisor, somebody like us, who specializes in small businesses, someone who can actually break down what the changes will mean specifically for you. Second, focus on strengthening your cash flow and building a financial cushion. This means cutting unnecessary expenses, staying on top of your receivables, that's money people owe you, and creating a reserve fund to weather unexpected costs. Having a buffer is going to give you flexibility if there are new tax burdens that arise. Third, I want you to review your current tax strategy. So, for example, consider making deductions now like section 179, which is a tax deduction on equipment purchases, or taking the home office deduction. You want to make sure that you're taking everything you possibly can, maximizing it to the fullest while it exists. You may also want to reevaluate your business structure. If you're a sole proprietor or an LLC, it might make sense to switch to an S-Corp, which is a tax status only. It's not a legal entity type. Or you might want to consider something else entirely. Again, you'll want to talk to your tax advisor, but choosing the tax status that makes the most sense for you and offers better tax advantages under the new laws is something to be aware of. Again, though, talk to your tax advisor and make sure you're working with someone who understands how things specifically affect you as a small business owner and the type of business that you run. Finally, I recommend collaborating with your community. Many small businesses face similar challenges, and collective action can help amplify your voice when you're advocating for fair tax policies. Organizations like your local Chamber of Commerce or small business advocacy groups will not only provide resources to educate you on these changes, but opportunities to make your concerns heard. And for those of you that know that one of my side projects is a Substack called Call Your Representatives, which you can find at callyourrepresentatives.com, this is a great way to start getting in that habit of reaching out to your representatives when there's something that you like or don't like is by telling them what you think about potential tax law changes. Now, while you can't necessarily control policy changes, although you can call your representatives and make your voice heard, being proactive about your financial strategy can help ensure that your business remains resilient no matter what comes your way. Now, if you've got a listener question that you want to submit and have read on the air, send it to us at disruptyourmoney.com. All right, friends, that is it for another episode of Disrupt Your Money. I'm your host, Meg Kay Wheeler. And if you like what you hear, please remember to subscribe to Disrupt Your Money on your favorite podcast player and leave us a review. We may shout out your review in an upcoming episode. And if we do, you'll also get a special little gift from us. Until next time, let's keep disrupting.