What Can You Really Deduct? A Local Guide to Business Expenses in Wisconsin

Allison Sikorsky
Jun 6
3 min read

Updated: Oct 14

Every small business owner has asked it at some point: "Can I write this off?" Whether you're grabbing coffee for your team, buying supplies for your boutique, or driving to a vendor in Green Bay, understanding what counts as a legitimate business expense can make a big difference at tax time.

I've pulled together a guide to help you understand what you can (and can’t) deduct as a Wisconsin small business owner.

The Basics: What Counts as a Deductible Business Expense?

The IRS rule is simple (but the details aren’t): a deductible business expense must be ordinary and necessary for your trade or business.

Let’s break it down with Wisconsin-friendly examples.

Common Deductions for Wisconsin Small Businesses

Office Supplies and Tools - Pens, paper, printer ink, software subscriptions, POS systems, and tools used daily in your trade.
Business Meals - You can deduct 50% of the cost of meals when dining with clients, employees, or vendors, as long as business is discussed.Example: Lunch with a local supplier in Sturgeon Bay to review your spring inventory lineup.
Vehicle Expenses - Mileage for business trips, deliveries, and errands related to your business.Example: Driving to Green Bay to pick up materials for your salon? That’s deductible.
Home Office - If you use a dedicated space in your home exclusively for business, you may be eligible for a home office deduction—even in a small apartment or rural home office.
Advertising and Marketing - Social media ads, printed brochures, signage, branded merch, or local newspaper listings in Door or Kewaunee County.
Professional Services - Bookkeeping, tax prep, legal consultations, web development—if it supports your business, it likely qualifies.
Business Insurance - Liability insurance, property insurance, cyber protection, or any other business-related policy.
Continuing Education - Courses, certifications, or seminars that improve your professional skills or help grow your business.
Rent and Utilities - Rent for a storefront, coworking space, or commercial kitchen. Utilities are deductible if you pay them separately for your business space.
Employee Wages and Benefits - Payroll, bonuses, health insurance contributions, and retirement matches.

Wisconsin-Specific Considerations

Sales Tax Doesn’t CountYou can’t deduct sales tax you collect from customers—since it’s not technically your income. But you can deduct sales tax you pay on eligible business purchases.

State Filing FeesYour Wisconsin Annual Report filing fee and any local licensing fees are deductible as business expenses.

What Doesn’t Count?

Not everything flies with the IRS. Here's what you can’t deduct:

Clothing, unless it’s a branded uniform or required safety gear
Personal meals or groceries (even if you’re working)
Fines or penalties (including late tax fees)
Political donations
Commuting from home to your main place of work

Keep It Clean: How to Track Expenses the Right Way

To make the most of your deductions:

Keep digital and paper receipts
Separate business and personal accounts
Use accounting software like QuickBooks Online to categorize expenses
Work with a professional to make sure you’re not missing out—or overstepping

Make Every Dollar Count

At Curated Accounting Solutions, we help small businesses across Door, Kewaunee, and Brown Counties maximize their deductions the right way—without the gray area or the guesswork. Whether you want help setting up a clean system or reviewing what’s already in place, we’ve got you covered.

Curious what you could be deducting? Let’s talk.

My goal is to work with small business owners just like you!