10 Tax Deductions You or Your CPA Might’ve Missed This Year
Did taxes suck this year? Whether you filed taxes in April or did an extension and got your taxes filed by today, it’s no fun to make good money and find out the IRS still took a chunk the size of a small car. And, you may have missed tax deductions for your small business and not even know it.
Your CPA files your taxes, but who’s making sure you don’t overpay for taxes?
Most small business owners assume their CPA has them covered. That if there’s a deduction to be taken, it’s already handled.
But the truth is this: Most CPAs are focused on compliance and not necessarily making sure you got every deduction you should. Their job is to get your return filed accurately and on time.
There’s not just one reason why many small business owners are missing out on financial opportunities and growth. There are several factors at play (bookkeeping, tax strategy, operations, and financial strategy) and more often than not, there’s no one connecting the dots between all these factors for small businesses.
A lot of business owners are flying blind because their books aren’t giving them the clarity they need.
Expenses are lumped into vague categories.
Chart of accounts are generic.
Reports are flat.
So even when the books “balance,” they don’t give a clear picture of where the money is coming from and where it is going. Come tax time, it can mean that significant deductions get left on the table.
At Hoffbeck+Co, we bridge the gap.
We handle bookkeeping that’s detailed and narrative (ie: so you know what your numbers mean within the context of your business) and pair it with CFO-level financial strategy that helps you make smart, informed financial decisions.
Why You Might Be Missing Tax Deductions for Your Small Business
1. The System Rewards Speed, Not Depth
CPA firms often have to move fast to be able to process hundreds of returns in a short window. This can lead to skipped questions like:
“Are you using part of your home for work?”
“Do you drive for business?”
“Are you reimbursing yourself correctly?”
If your CPA didn’t ask these questions, there’s a good chance the deductions never made it onto your return. And if your bookkeeping isn’t detailed enough to surface those insights, they’ll never even know to ask in the first place.
2. LLCs and S-Corps Play by Different Rules
If You’re an LLC (taxed as a sole proprietor or partnership):
You can usually claim things like home office, mileage, and mixed-use deductions directly on your tax return (Schedule C or your partnership statement).
It’s simpler, but still easy to miss if your CPA doesn’t ask for square footage, mileage logs, or household expenses.
If You’re an S-Corp:
Deductions like home office and mileage aren’t automatic.
They have to flow through an Accountable Plan — a reimbursement policy that allows your S-Corp to pay you back for: (1) Home office, (2) Mileage, and (3) Cell phone and internet
Without that plan, those deductions vanish, even if you spent the money.
Why Most CPAs Don’t Go Deep On Deductions
1. The incentive structure isn’t built for it.
Most CPAs are paid a flat fee to file accurate returns. Whether they save you $1,000 or $100,000, their compensation doesn’t change. The traditional tax-prep model rewards speed and accuracy.
2. The risk doesn’t feel worth it.
A CPA’s license and reputation are on the line if a deduction gets challenged. That pressure makes many CPAs play it safe, especially in gray areas like home office, vehicle use, or Augusta Rule deductions.
That’s where Hoffbeck + Co comes in.
We make sure the story behind your numbers is clean, detailed, and well-documented. We want to make sure you ask your CPA about your deductions, so you can be sure to get all of them that are rightfully yours.
10 Deductions CPAs Commonly Miss (and The Questions You Should Ask)
Here are some of the most commonly missed tax deductions for small business owners, and exact questions you to ask your CPA to avoid leaving money on the table.
01. Home Office Deduction
Q: “Did we calculate my home office based on square footage?”
No square footage = no deduction.
02. Business Mileage or Vehicle Use
Q: “Did we include mileage or vehicle expenses for business use?”
If they didn’t ask for your mileage, you didn’t get it.
03. Actual Vehicle Expense Method
Q: “Would the actual expense method (with depreciation) save me more than standard mileage?”
This method can unlock thousands in depreciation write-offs for business-use vehicles.
04. Augusta Rule
Q: “Can I use the Augusta Rule to rent my home to my business tax-free?”
Ideal for hosting team events, shoots, or meetings at home.
05. Home Utilities for Office
Q: “Did we include my electric, internet, and water expenses?”
Often missed even when the home office itself is claimed.
06. Accountable Plan Reimbursements (S-Corp)
Q: “Do I have an accountable plan in place for mileage, phone, and home office?”
Without it, your S-Corp loses key deductions.
07. Depreciation & Section 179
Q: “Did we use Section 179 or bonus depreciation strategically this year?”
08. Health, Dental, and Vision Insurance Premiums
Q: “Are my health, dental, and vision insurance premiums being deducted correctly?”
LLCs: Deductible on your personal return (Form 1040) if you have net income and no other coverage.
S-Corps: Deductible only if paid or reimbursed through the business and added to your W-2.
Dental and vision premiums count, too.
09. Retirement Contributions
Q: “Did we maximize my retirement contributions this year?”
Small business owners have several pathways to build tax-advantaged retirement savings from personal IRAs to business-based plans like SEP IRAs, SIMPLE IRAs, or Solo 401(k).
10. Prepaid Expenses & Year-End Timing
Q: “Should I prepay anything before year-end to reduce taxes?”
Rent, insurance, or professional services paid before Dec 31 can reduce taxable income.
Hoffbeck + Co’s Approach to Bookkeeping To Help You Save Money
We believe:
Bad bookkeeping is part of the problem. Messy or oversimplified books lead to missed deductions and bad data.
Good bookkeeping is the foundation of strategy. We don’t just categorize transactions. We build a financial narrative. Every line tells a story that supports smarter decisions.
Strategy without clean data is just guessing. We give you both: (1) the precision of a bookkeeper and (2) the foresight of a CFO.
We help you:
Keep your books clean and decision-ready.
Spot missed deductions before it’s too late.
Hold your CPA accountable while they focus on compliance.
Make proactive moves that build wealth, not just file history.
Because the thing is, tax-aware financial strategy is too important to dismiss or assume your CPA has it covered, especially when missed tax deductions for small business can add up to thousands lost each year.
Your CPA may only be your tax-filer, not your tax strategist.
I’ve used TurboTax for as long as I can remember. It has some issues here and there, but overall it does a good job at helping someone file their taxes. At the lowest level, a CPA can often act as a “real-life-person-TurboTax”, just helping you file your taxes and catch the common, easy deductions.
There may be a lot of CPAs out there who are outliers… who help you get all these deductions and more. I hope so, and I hope you find them. (If you do, let me know who they are!)
This isn’t about blaming CPAs, their job is important and many are damn good at it. This is about naming the gap. Calling out the myth that if you have a CPA that all your finance, accounting, and tax needs are met perfectly. That would be the exception, not the norm from what we have seen over the last decade.
More business owners need to know that CPAs often are just filing their taxes based on what is in front of them. CPAs are not actively hunting for additional deductions. Tax consulting and advice aren’t baked into every filing service.
If you are unclear about what your CPA’s role actually is (i.e., exactly what they’re doing or not doing for you). then you’re probably missing out. We’re not anti-CPA. We’re anti-oblivious. We’re anti-small business owners being in the dark.
So, ask your CPA about your deductions. Understand that a CPA isn’t the silver bullet for all your finance needs. Most CPAs file your taxes and keep you compliant, and that’s valuable. But your financial clarity, strategy, and proactive decision-making? That’s on you and on partners like us who can help you connect the dots.
Here's to paying the proper amount in taxes and not a dollar more.
- Lane
P.S. We provide bookkeeping and CFO services for small businesses? Click here to schedule a call with Lane to get personalized finance help for your business.💥
P.P.S. Click below to download our FREE Financial Accounts Setup Guide that outlines specific steps to take to help you get your business financial organization set up intentionally, giving you confidence and peace of mind.
More soon,
Lane
CONSULTANT + PARTNER
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