2025 Tax Write Offs for an LLC

In 2025, LLC owners can leverage several tax write-offs, including major updates from the One Big Beautiful Bill (OBBB), which made high-impact deductions like 100% bonus depreciation permanent.

Top LLC Tax Write-Offs for 2025

• 100% Bonus Depreciation: LLCs can immediately deduct the full cost of qualifying new or used business assets (e.g., machinery, computers, and equipment) in the first year.
• Section 179 Deduction: For 2025, you can deduct up to $2.5 million in qualifying equipment purchases, with a phase-out threshold of $4 million.
• Qualified Business Income (QBI) Deduction: Owners of pass-through LLCs may deduct up to 20% of their net business income from their personal taxes. For 2025, the full deduction is generally available for single filers with taxable income below approximately $197,300 and joint filers below $394,600.
• Home Office Deduction: If you use a portion of your home exclusively for business, you can use the simplified method ($5 per square foot up to 300 sq. ft., max $1,500) or the actual expenses method.
• Vehicle Expenses: The 2025 standard mileage rate is 70 cents per mile. Alternatively, you can deduct actual expenses like gas, repairs, and insurance based on the business-use percentage.
• Startup & Organizational Costs: New LLCs can deduct up to $5,000 in startup costs and $5,000 in organizational costs (e.g., state filing fees, legal services) in their first year if total costs are under $50,000.
• Business Travel & Meals: Travel (airfare, hotels) is 100% deductible. Most business meals are 50% deductible, while company-wide events like holiday parties are 100% deductible.
• Self-Employed Health Insurance: If you pay for your own health insurance and have a business profit, you can often deduct 100% of premiums for yourself, your spouse, and dependents.
• Retirement Contributions: Contributions to SEP IRAs, Solo 401(k)s, or SIMPLE IRAs are deductible. For 2025, the total 401(k) contribution limit (employee + employer) is $70,000.

Operational & Professional Deductions

• Professional Fees: 100% of fees paid to accountants, bookkeepers, and attorneys for business matters.
• Marketing & Advertising: 100% of costs for website design, digital ads, business cards, and promotional events.
• Office Supplies & Subscriptions: 100% of software subscriptions, office supplies (pens, paper), and furniture.
• Bank Fees & Interest: 100% of business bank account fees and interest on business loans or credit cards.