Fuel Your Success: Maximize Your Business Deductions

Running a service-based business? Meals, mileage, and vehicle expenses aren’t just costs—they’re powerful tools to save money. Let’s make deductions simple and stress-free for consultants, tradespeople, cleaners, and all hands-on professionals.

Meals: More Than Just Food

Meals are often part of winning clients and building relationships. Here’s what’s deductible—and what isn’t.

Deductible Meals

• Client Meetings Over Meals: 50% deductible
  ​Example: HVAC contractor breakfasts with a property manager to pitch a maintenance contract.
• Overnight Service Travel: 50% deductible
  ​Example: IT consultant dinners while on a multi-day client site trip.
• Team Meals on Job Sites: 100% deductible
  ​Example: Landscaping crew lunch during an all-day property installation.

Not Deductible

• Solo lunch at your desk
• “Just because” coffee with a client
• Meals without receipts or logs

Your Vehicle: The Mobile Office

For service providers, your vehicle is often your most important tool. Track it wisely and choose the method that saves you the most:

1. Standard Mileage (2026: 72.5¢/mile)

• Best if your car is used for both personal and business
• Simple to track

2. Actual Expenses

• Best for dedicated service vehicles
• Deduct gas, repairs, insurance, depreciation based on business use percentage

Example:​
​A plumber drives a dedicated van 20,000 miles/year:

• Standard Mileage Deduction: $14,500
• Actual Expenses Deduction: $12,500
• Verdict: Standard Mileage wins—but check your specific costs!

Deductible Service Trips Include:

TripExampleDeductible?Shop/office → client siteElectrician driving to a home rewireYesMultiple clients in one dayCleaning service from Office A → Office BYesSupply store for materialsCarpenter buying lumberYesBusiness meeting or trainingMassage therapist seminarYesRegular commute to your main officeDriving to your own garageNoPersonal errandsGrocery stop on the way backNo

Track Like a Pro

Don’t rely on memory—track everything easily:

• Mileage: MileIQ, Everlance, QuickBooks Mileage
• Receipts: Snap photos & store digitally (Notes, Google Drive, Expensify)
• Old-School: Dedicated spiral logbook in your glove compartment

Key Takeaways for Service Businesses

• Rule of Thumb: Ordinary, Necessary, Documented
• If an expense is directly tied to earning income → it likely counts!

This Month’s Action Items:

1. Check your tracking system—switch to an app if needed.
2. Sort receipts—create a “Q1 2026 Business Meals” folder.
3. Schedule a Year-End Review with us—optimize your vehicle deductions and strategy for 2026.

Samantha Santaniello, CPA​
Partner
Email: SSantaniello@RSKTAX.com
Phone: 845-600-2137
Website: www.rsktax.com​

"It’s not how much you make, it’s how much you keep." – Robert Kiyosaki

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