Holiday Shopping Tax Tips for Business Owners
Before hitting the sales, businesses should know these key deductions and look out for overspending.


Every year, Black Friday (the day after Thanksgiving) pulls millions out of bed to shop the latest deals. While most may 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 may claim a tax deduction on purchases like computers, furniture, software, and printing.
But be sure the expenses qualify for a deduction. Also, heed other potential pitfalls, like reduced cash flow and the timing of purchases.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Business expense deductions
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 may be tax-deductible on your year-end return. This may include business expense deductions for:
- Technology and electronics, like computers, keyboards, and printers
- Business card processing fees
- Software subscriptions
- Office supplies, like pens, paper, ink
- Marketing and advertising (think ‘printing materials’ in terms of Black Friday deals)
- Office furniture and equipment, like 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.
Non-deductible business expenses
Whether you’re perusing the 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 may 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
Personal vs. professional business expenses
There may 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 are 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.
Year-end holiday shopping
It’s easy to get pulled in by flashy “SALE” signs, especially during the holiday season. But 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 2024, you could expense on your federal return:
- $1,220,000 in qualifying business purchases, OR
- Taxable income, whichever is less
For this reason, timing matters. Be sure to consult with a tax professional for rules that may be unique to your situation, though, and keep in mind state income tax laws may differ from federal.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

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.
-
I’m Over 65 and Itemize: Can I Claim the New $6,000 ‘Senior Bonus’ Tax Deduction?
Tax Changes If you’re an older adult, a new bonus deduction could provide a valuable tax benefit.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to Know
GOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
I’m Over 65 and Itemize: Can I Claim the New $6,000 ‘Senior Bonus’ Tax Deduction?
Tax Changes If you’re an older adult, a new bonus deduction could provide a valuable tax benefit.
-
Another State Rebels Against Trump’s New 2025 Tax Law: What Now?
State Taxes Even if states adopt tax policies in the so-called ‘big beautiful bill,’ lawmakers may have workarounds at their fingertips.
-
Is Trump's Tax Plan Speeding Up the Looming Social Security Funding Crisis?
Social Security Social Security's combined retirement funds are running out of cash, and its insolvency date is expected to occur in less than a decade.
-
New Trump Tax Bill: Five Changes Homeowners Need to Know Now
Tax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
Will You Get a ‘Surprise’ Tax Bill on Your Social Security Benefits in Retirement?
Retirement Taxes Social Security benefit payments might land you in hot water when filing 2025 taxes — here are three reasons why.
-
Stay NJ Could Give You $6,500: The Deadline You Can't Miss
Property Taxes New Jersey has a new property tax relief program for 2025. The application deadline is approaching fast.
-
How the 2025 Child Tax Credit Rules Impact Single Parents
Tax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
The Fall Garden Tax? What to Plant and How to Prepare
Tax Tips Fall gardening could increase your taxes this season. Here’s what to know while planting in 2025.