10/23/2026
Give Ace Bookkeeping & Tax Services a try for all of your small business book work. 509-554-3306
🧾💚💛 ACE WRITE-OFF WEDNESDAY!
🚨 JUST BECAUSE YOUR BUSINESS PAID FOR IT… DOESN'T MAKE IT A BUSINESS WRITE-OFF!
Wait… WHAT?! 😳
You used your business debit card, so it's automatically a business expense, right?
Not necessarily!
One of the biggest misconceptions among small-business owners is that anything purchased through their business account can be deducted on their tax return.
💡 HERE'S WHAT REALLY MATTERS:
The IRS generally requires deductible business expenses to be ordinary and necessary for your business.
And here's where things can get tricky…
📱 Your phone? Maybe partly deductible.
🌐 Your home internet? Possibly, based on business use.
🚗 Your vehicle? Business mileage or eligible actual expenses, depending on the method and circumstances.
🍽️ That lunch you grabbed while working? Not automatically deductible just because you were conducting business.
🛒 Personal groceries purchased with your business card? Still personal!
WHO PAID FOR IT DOESN'T DETERMINE WHETHER IT'S DEDUCTIBLE. WHY IT WAS PURCHASED DOES!
💰 LET'S LOOK AT A SIMPLE EXAMPLE:
Your monthly phone bill is $100.
You use your phone 70% for business and 30% personally.
Assuming that allocation is reasonable, documented, and the expense otherwise qualifies:
✅ $70 may be deductible as a business expense.
❌ $30 is personal and generally not deductible.
The same principle applies to many mixed-use expenses.
🎯 THIS WEEK'S WRITE-OFF CHALLENGE
Take 10 minutes and review three expenses you've been deducting.
Ask yourself:
✔️ Is this truly a business expense?
✔️ Is any portion personal?
✔️ Can I document the business purpose and amount?
Remember, good bookkeeping isn't just about recording transactions. It's about recording them correctly.
💚 ACE INSIGHT
Separating personal and business expenses doesn't just make tax preparation easier. It gives you a more accurate picture of what your business actually costs to operate.
And that's information you can use to make better financial decisions all year long!
💬 LET'S TALK!
Have you ever wondered whether a particular purchase qualifies as a business write-off?
👇 Drop your questions in the comments! Let's learn together.
💚 ACE Bookkeeping & Tax Services
Keep More. Stress Less.
Helping Individuals & Small Businesses Build Stronger Financial Futures.
📞 509-554-3306
📧 [email protected]
📍 Tri-Cities, Washington
📚 IRS RESOURCES OF THE WEEK
🔗 IRS Publication 334 — Tax Guide for Small Business
https://www.irs.gov/publications/p334
🔗 IRS Publication 463 — Travel, Gift, and Car Expenses
https://www.irs.gov/publications/p463
🔗 IRS — Why Should I Keep Records?
https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records
Every business is unique. Tax deductions, accounting methods, and documentation requirements depend on individual circumstances and applicable IRS rules. This post is for general educational purposes and is not a substitute for personalized tax or financial advice.
