Can I deduct my home office?

If you use a specific area of your home regularly and exclusively for business, yes, on a properly apportioned basis. The exclusivity requirement is the one that disqualifies most claims — a desk in a room used for other purposes generally does not qualify.

Is a bank statement enough evidence?

Not on its own. A bank line proves money left; it does not prove what it bought or that the purchase was for the business. Keep receipts and, for anything unusual, a note of the business purpose recorded at the time.

What do founders most often miss?

Payment processing fees, because they record only net platform deposits rather than gross revenue with fees as a separate expense. Over a year those fees are frequently larger than the accounting bill.

US business taxes: every form, deadline and obligation

Guide · 1 min read

Business deductions: what founders can actually write off

The rule is short: ordinary and necessary for the business. The constraint is evidence, and that is where claims fall apart.

The short answer

A US business expense is deductible if it is ordinary and necessary for the business. Common deductions include software, contractor payments, professional fees, business travel, home office on an apportioned basis, and payment processing fees. The practical constraint is documentation rather than eligibility.

The commonly claimed

Software, hosting and tools used for the business.
Contractor payments, with a W-9 collected and a 1099-NEC issued where required.
Professional fees — accounting, legal, formation costs.
Business travel, with contemporaneous records of purpose.
Home office, apportioned, where the exclusive-use test is met.
Payment processing fees — the most commonly missed line.
Advertising and marketing.
Business insurance.

The ones that cause problems

Meals and entertainment, where the rules have changed repeatedly — check current guidance rather than an older article.
Mixed personal and business use — a laptop used for both needs apportioning, not full deduction.
Anything paid from a personal account without being recorded as a contribution.
Inventory, which is capitalised rather than deducted when bought — see e-commerce accounting.

For how this fits the return itself, see US business taxes.

Frequently asked questions

Can I deduct my home office?: If you use a specific area of your home regularly and exclusively for business, yes, on a properly apportioned basis. The exclusivity requirement is the one that disqualifies most claims — a desk in a room used for other purposes generally does not qualify.
Is a bank statement enough evidence?: Not on its own. A bank line proves money left; it does not prove what it bought or that the purchase was for the business. Keep receipts and, for anything unusual, a note of the business purpose recorded at the time.
What do founders most often miss?: Payment processing fees, because they record only net platform deposits rather than gross revenue with fees as a separate expense. Over a year those fees are frequently larger than the accounting bill.

Sources

Last reviewed August 23, 2026. Verify against the primary source before acting.

Founders 8 does not provide tax advice. Tax residency depends on facts and rules specific to each jurisdiction — review your position with a qualified adviser.

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