Small Business Tax Deductions Murrieta Owners Often Miss

The small business tax deductions Murrieta owners often miss include half of self-employment tax, self-employed health insurance, the home office deduction, business mileage, and retirement plan contributions. Most slip through because they don’t show up on a business bank statement. Summerhill Tax Services explains what may qualify for each one, the 2026 figures to know, and the records to keep.

Which Small Business Tax Deductions Get Missed Most?

Five deductions are easy to overlook, and each has its own rules for who qualifies.

Can You Deduct Half of Your Self-Employment Tax?

Generally, yes. If you’re self-employed, you pay both halves of the 15.3% self-employment tax that funds Social Security and Medicare, and the IRS lets you deduct the employer-equivalent half from your income. It doesn’t lower the self-employment tax itself, but it can reduce your income tax. If self-employment tax is a big line on your return, our S-corp vs. LLC breakdown covers one way owners reduce it.

Is Self-Employed Health Insurance Deductible?

It can be. Premiums for you, your spouse, and your dependents may be ‌deductible if you weren’t eligible for an employer-subsidized plan through your job or your spouse’s, and the deduction can’t exceed your business’s net profit. This one gets missed when premiums come out of a personal account instead of the business’s.

Who Qualifies for the Home Office Deduction?

You may qualify if you use part of your home regularly and exclusively for business and it’s your principal place of business. A converted spare room in Greer Ranch can count. The kitchen table doesn’t. The IRS simplified option allows $5 per square foot, up to 300 square feet, for a maximum of $1,500. Using the regular method on Form 8829 might result in a bigger deduction, but it involves tracking actual home expenses.

What Is the 2026 Business Mileage Rate?

The IRS standard mileage rate for business is 72.5 cents per mile from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31. So log trips by date. A trip from your home office to a job site off Clinton Keith Road can qualify. Driving from home to a regular workplace is commuting and generally doesn’t qualify. Our post on commuting and deductible mileage covers where that line falls.

How Much Can You Put Into a SEP IRA or Solo 401(k)?

For 2026, a SEP IRA allows contributions of up to 25% of compensation (roughly 20% of net earnings for sole proprietors), capped at $72,000. You can open one as late as your filing deadline, including extensions. A Solo 401(k) often allows more at moderate incomes, but setup deadlines can vary. If the Solo 401(k) is on your list, decide before year-end.

How Does California Treat These Deductions?

California allows most of the deductions above but limits equipment write-offs and doesn’t offer the QBI deduction. Two differences matter for Murrieta owners:

• Equipment purchases. California caps the Section 179 deduction at $25,000 and reduces it once you place more than $200,000 of property in service. It doesn’t allow bonus depreciation.
• The QBI deduction. The federal 20% qualified business income deduction has no California equivalent.

So if you’re outfitting a shop along Jefferson Avenue, a large federal write-off may not carry the same weight on your state return. Plan purchases with both numbers in view.

What Records Do You Need to Claim These Deductions?

Each deduction is only as strong as your paperwork. Keep a mileage log with dates, destinations, and business purposes. Save health insurance statements, retirement contribution confirmations, and the measurements of your home office. A photo of the workspace can help too. Earning on the side? Our guide to managing side hustle income covers what gig workers should track.

Get Help Before Filing Season

There’s still time to review a retirement plan or clean up your mileage log before December 31. Book an appointment with Summerhill Tax Services to review your small business tax deductions. Our office sits in the Ivy Springs Business Park, and we work with small business owners up and down the I-15 corridor.

This guide is for general informational purposes and isn’t tax or legal advice. Deduction rules involve details specific to your situation. Talk with a tax professional or check IRS.gov and FTB.ca.gov to confirm figures before you file.