What can United States businesses claim as expenses?

Partially, US business meals are 50% deductible under IRC Section 274(n). The temporary 100% deduction for restaurant meals (2021–2022 only) has expired. Entertainment is NOT deductible at all under TCJA.

Yes, ordinary and necessary business travel away from your tax home is fully deductible (transport, lodging, dry cleaning, etc.) plus 50% of meals. The trip must be primarily for business: personal vacation days mixed in get apportioned.

No, entertainment expenses are entirely non-deductible since the Tax Cuts and Jobs Act changes that took effect in 2018. Sports tickets, concerts, theater, golf: all disallowed even if business is discussed. Meals are still 50% deductible if separately stated.

Yes, US self-employed people can claim the home office deduction using either the simplified method ($5/sq ft up to 300 sq ft = $1,500 max) or the regular method (actual expenses × business-use percentage). W-2 employees cannot claim it while the suspension of miscellaneous itemized deductions applies.

Yes, fees paid to CPAs, tax preparers, attorneys, bookkeepers and consultants for business purposes are fully deductible. Capitalize legal fees that relate to acquiring assets or organizing the business.

Yes, under IRC Section 179, US businesses can immediately expense up to $2,500,000 of qualifying equipment placed in service in 2025 and $2,560,000 in 2026. The deduction is reduced dollar for dollar once total section 179 property placed in service passes $4,000,000 in 2025 or $4,090,000 in 2026. Bonus depreciation is 100% for qualified property acquired and placed in service after 19 January 2025.

Yes, self-employed people can deduct 100% of health insurance premiums for themselves, spouse, and dependents as an above-the-line adjustment on Schedule 1, even if they don't itemize. The deduction cannot exceed net self-employment earnings.

Yes, SEP-IRA and Solo 401(k) contributions are fully deductible. SEP-IRA: up to 25% of compensation, max $72,000 for 2026 ($70,000 in 2025). Solo 401(k) allows up to $72,000 for 2026 plus the catch-up for age 50 and over ($8,000 in 2026), often higher than SEP at modest incomes due to the employee deferral.

Yes, SaaS subscriptions used for business are fully deductible in the year incurred. Perpetual software licenses can be deducted under Section 179 (immediate expense up to $2.5 million in 2025 and $2.56 million in 2026) or amortized over 36 months.

Yes, US self-employed people can claim vehicle expenses using either the standard mileage rate (70 cents a mile in 2025. In 2026 the rate is 72.5 cents from 1 January to 30 June and 76 cents from 1 July to 31 December) or the actual expense method (gas + insurance + depreciation × business %).