🛠️ Small Businesses & Self‑Employed: 2025 Tax Highlights (Copy)

Written By Oliver Villapando

2025 brings several updates that impact sole proprietors, contractors, and small businesses:

  • Mileage deduction rises to $0.70/mile, up from $0.67 in 2024; if you track business mileage, this could reduce taxable income driversnote.com.

  • Section 179 expensing thresholds increase—businesses can now deduct up to $1.3 million on qualifying equipment purchases before phase‑outs begin at $3.2 million wierenga.tax.

  • Home office deduction remains straightforward: $5 per square foot, up to 300 square feet for a possible $1,500 maximum insureon.com.

  • Qualified Business Income (QBI) 20% deduction continues, with phase‑outs now applicable to incomes above $364,200 (joint) and $182,100 (single) investopedia.com+7wierenga.tax+7taxpolicycenter.org+7.

Bottom line: These changes offer more flexibility and opportunities for self-employed professionals and entrepreneurs to reduce taxable income. To maximize benefits, maintain good records—especially for mileage, equipment purchases, and home-office usage.

This blog was written with the help of AI.

Oliver Villapando
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