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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
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.
Read More
- Seven Tax Deductions for the Self-Employed
- New Tax Rules: Income the IRS Won’t Touch in 2025
- Another IRS 1099-K Threshold Change to Know for Your 2025 Taxes
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
IRS Says You Made a Tax Return Mistake? A New Law Could Help You Fight BackTax Law Updated taxpayer protections change what the IRS must explain on error notices and how long you have to respond.
-
Tax Refund Alert: House GOP Predicts 'Average' $1,000 Payouts in 2026Tax Refunds Here's how the IRS tax refund outlook for 2026 is changing and what steps you can take now to prepare.
-
New IRS Changes to FSA Contribution Limits for 2026: What to KnowHealth Care Flexible Spending Accounts have tax advantages worth looking into, especially in light of new IRS changes.
-
Is a New $25,000 Health Care Tax Deduction Coming in 2026?Tax Policy A proposal from GOP Sen. Josh Hawley adds to the chatter about health care affordability.
-
Are You Middle-Class? Here's the Most Tax-Friendly State for Your FamilyTax Tips We found the state with no income tax, low property tax bills and exemptions on groceries and medicine.
-
Costco Sues Over Trump Tariffs: What Could That Mean for Prices in 2026?Tariffs The retailer is making headlines not just for its famous hot dog and gold bars but for suing the Trump administration over tariffs.
