What deductions can I claim as a sole proprietor or LLC owner in 2025?

Answer:

Key deductions include:

  • Business Expenses: Office rent, supplies, equipment, software
  • Home Office Deduction: For dedicated home workspace used exclusively for business
  • Mileage & Vehicle Expenses: Standard IRS mileage rate or actual expenses (plus the new auto loan interest deduction up to $10K/year for U.S.-assembled vehicles)
  • Retirement Contributions: SEP IRA, Solo 401(k), SIMPLE IRA
  • Tip & Overtime Deductions: For owners in service-based businesses
  • Depreciation & Section 179 Expensing: Increased limits for equipment and asset purchases
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