top of page

FAQ:

Tax-Deductible Expenses for Beauty and Wellness Solopreneur

As a beauty or wellness professional, knowing what expenses are tax-deductible can help you save money and reinvest in your business. Below are the most frequently asked questions:

1. Can I Deduct the Clothes I Wear to Work?

Clothing is only deductible if it meets both of these criteria:

  • Not Suitable for Everyday Wear: Examples include branded aprons, smocks, and protective clothing.

  • Required for Your Job: Items like lab coats or PPE (masks, gloves, face shields).

 

Examples of Deductible Clothing:

  • Uniforms with your salon logo.

  • Non-slip shoes required for safety.

  • Smocks or aprons to protect against chemicals, oils, or dyes.

 

Non-Deductible Items: Everyday clothing like black pants, casual tops, or general comfort shoes.

​

2. Are Meals Tax-Deductible?


Yes, but the deduction depends on the type of meal:
Meals That Are 100% Deductible:

  • Meals provided at a company party or employee event.

  • Meals and beverages offered to the public during a promotional or marketing event.

  • Meals purchased at a restaurant for business purposes (2021–2025).

 

Meals That Are 50% Deductible:

  • Business meals with clients or prospects where business is discussed.

  • Meals during overnight business travel.

 

Non-Deductible: Personal meals, snacks, or groceries.

​

Overall, meals can be tax-deductible if they are related to more than one person and conducting business.

​

3. Are Entertainment Expenses Deductible?


Most entertainment expenses are not deductible, but there are exceptions:

  • Deductible: Office parties or team-building events for employees (100% deductible).

  • Non-Deductible: Concert tickets, sports events, or recreational activities with clients or employees.

 

4. Can I Deduct My Salon Rent?


Yes, the cost of renting a booth or salon space is fully deductible as a business expense.

​

5. Can I Deduct My Car Expenses?


You can deduct car expenses for business-related driving:

  • Driving to purchase supplies or run business errands.

  • Driving to meet clients or attend industry events.

 

Non-Deductible: Commuting from home to your regular place of work (e.g., your salon booth).

 

Deduction Methods:

  • Standard Mileage Rate: 67 cents per mile (2024 rate, subject to change annually).

  • Actual Expenses: Includes gas, repairs, insurance, and depreciation based on the percentage of business use.

​

6. Are Marketing and Advertising Costs Deductible?


Yes, all expenses for marketing and advertising your business are fully deductible, including:

  • Website design and hosting fees.

  • Social media ads and influencer collaborations.

  • Business cards, flyers, or signage.

​

7. Can I Deduct Professional Development Costs?


Yes, you can deduct expenses for:

  • Attending industry conferences or workshops.

  • Online courses or certifications related to beauty or wellness.

  • Books, magazines, or subscriptions for professional growth.

​

8. Can I Deduct Products and Supplies Used in My Business?


Yes, products and supplies directly used for clients or business operations are deductible, such as:

  • Hair dyes, massage oils, nail polish, or tattoo ink.

  • Towels, cleaning supplies, and disinfectants.

  • Non-Deductible: Personal care items for your own use.

 

9. Can I Deduct My Phone or Internet Bill?


If you use your phone or internet for business, you can deduct the business-use percentage of these expenses.


Example: If 50% of your phone usage is for client calls and scheduling, you can deduct 50% of your phone bill.

​

10. Are Home Office Expenses Deductible?


Yes, if you use a portion of your home exclusively for business (e.g., for administrative tasks).
Deduction Methods:

  • Simplified: $5 per square foot (up to 300 sq ft).

  • Actual Expenses: Deduct a percentage of home expenses like rent, utilities, and repairs.

 

11. Can I Deduct Travel Expenses?


Yes, business travel expenses are deductible, including:

  • Airfare, hotel stays, and transportation for attending conferences or meeting clients.

  • 50% of meals during travel.

​

Non-Deductible: Personal vacations, even if combined with business travel.

​

12. Can I Deduct Payments to Contractors or Employees?


Yes, payments made to contractors or employees for business services are fully deductible. Ensure you issue Form 1099-NEC or W-2 as required.

​

13. Can I Deduct Loan Interest?


Yes, interest on business loans or credit cards used exclusively for business purposes is deductible.


Non-Deductible: Interest on personal loans or credit cards.

​

14. Are Software and Subscriptions Deductible?


Yes, software and tools used for your business are fully deductible.

​

15. What Records Should I Keep for Deductions?


Proper documentation is essential for claiming deductions. Keep records of:

  • Receipts and invoices for all purchases.

  • Mileage logs (if claiming car expenses).

  • Notes on the business purpose of meals, travel, and clothing.

​

Need More Help?


Contact Beauty & The Books for more resources, guides, and personalized tax support for beauty and wellness solopreneurs!

​

​​

​

bottom of page