ou’re doing your best. You’re saving every receipt, logging every coffee, and telling yourself it’s “all for the business.”
But here’s the reality: not everything you think is a business expense actually is—and getting it wrong can cost you big time if you’re ever audited.
Before the IRS comes knocking (and trust me, you don’t want that knock), here are 7 common expenses that small business owners incorrectly write off:
1. Personal Meals (Without Business Purpose)
Grabbing lunch solo? Sorry, my royal subject—that’s not a business meal. Meals must involve a client, prospect, or be for business travel to be deductible.
2. Clothing (Even If It’s “Workwear”)
Unless it’s a uniform or protective gear required for your job (and not suitable for everyday wear), your stylish Nordstrom haul is not a business write-off.
3. Commuting to Your Regular Office
That daily drive to your own office or co-working space? It’s considered personal commuting—and it’s not deductible.
4. Home Internet Bill (The Whole Thing)
Only the business portion of your internet usage can be deducted. You can’t write off your entire home Wi-Fi bill unless your business eats up 100% of your bandwidth (unlikely unless you run NASA from your couch).
5. Gym Memberships
Yes, even if you “network” at the gym. Unless you’re a personal trainer or the gym is directly tied to your work, this is a personal expense.
6. Birthday Gifts to Friends
Gifts to clients or business partners? Deductible (up to $25 per person per year). Gifts to your BFF? Not so much, even if you “talked about business” over cake.
7. Personal Cell Phone (Entire Bill)
If you use your personal cell phone for both personal and business purposes, you can only deduct the business-use percentage—not the entire bill.
The Takeaway:
The IRS isn’t fooled by creative storytelling. When in doubt, ask yourself:
Would I be making this purchase if I didn’t have a business?
If the answer is yes, it’s probably not deductible.
Need help sorting your real write-offs from the royal no-no’s?
Visit countessofaccounting.com and book your complimentary bookkeeping consultation today!
Keep it clean, keep it correct, and keep your crown, Queen.
