Year-End Tax Deductions for Small Business 2025

holiday snowman on a black computer keyboard — (Image credit: Getty Images)

Every year, Black Friday (the day after Thanksgiving) pulls millions out of bed to shop the latest deals. While most might be eying gifts for loved ones, the savvy business owner can take advantage of potential tax savings during year-end holiday sales.

In addition to price tag discounts, you might claim a tax deduction on purchases such as computers, furniture, software and printing.

Be sure the expenses qualify for a deduction, and heed other potential pitfalls, such as reduced cash flow and the timing of purchases.

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Black Friday business equipment write-offs

To qualify as a business deduction on your federal tax return, a claimed purchase must be:

Ordinary (common in the industry), and
Necessary (appropriate and helpful)

Any purchases meeting those requirements might be tax-deductible on your year-end return. This might include business expense deductions for:

Technology and electronics, such as computers, keyboards and printers
Business card processing fees
Software subscriptions
Office supplies, such as pens, paper, ink
Marketing and advertising (think ‘printing materials’ in terms of Black Friday deals)
Office furniture and equipment, such as shelves, desks and chairs

However, there are some restrictions on what qualifies as tax-deductible. Next, we’ll look at some business expenses you probably can’t deduct from your taxes.

Business expenses that aren't allowed (non-deductible)

Whether you’re perusing computer store shelves or hitting the racks at a retail outlet on Black Friday, be sure what you’re buying qualifies for a business expense deduction. Otherwise, you might be in for a rude awakening when tax time comes.

For instance, the following expenses are not tax-deductible:

Business clothes (unless it’s a uniform, safety equipment or other apparel you couldn’t use outside of the business)
Gifts more than $25 (given from a business to an individual)
Personal expenses

Can I buy business items for personal use?

There might be a temptation to claim a partial deduction for personal items you sometimes use for business. For instance, you could buy a printer for 50% business and 50% personal, or items for your home office that you use for non-office-related activities throughout the year.

But by “splitting” the use of an object, you're opening yourself up to a potential audit risk with the IRS. In other words, the IRS looks for this commingling of business vs pleasure in determining which audits to assess.

Document the times you use an asset for its intended business purpose.

Maximizing small business deductions before year-end

It’s easy to get pulled in by flashy “SALE” signs, especially during the holiday season. Be sure you’re spending money on value-added items to your business — not just decor or simple cosmetics.

You might not need to buy that new curved, ultrawide computer monitor if your current one works just fine.

Not only could frivolous expenditures cause you to spend more than you’re saving, but you could also run into cash flow issues later in the year when you don't have enough saved for investment.

That said, taking advantage of Black Friday timing can save tax dollars on more expensive buys, like computers, TVs, or other high-value equipment.

For these purchases, small businesses can expense the full cost of an asset even if bought at the end of the year. This means that, for 2025, you could expense on your federal return:

$2,500,000 in qualifying business purchases, or
Total business taxable income, whichever is less

Timing matters. Consult a tax professional for rules that might be unique to your situation, though, and keep in mind state income tax laws might differ from federal.

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Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.