Vehicles. Sole proprietors which represent the greatest percentage 3. CNBCSurvey. Monkey Small Business Survey took 8. Business owners can deduct the entire expense of a vehicle used solely for business purposes. For any other cars, business owners can deduct the price of business usage specifically. You can calculate the cost of operations through either the mileage rate method, which requires starting within the first year the car is purchased, or the actual expense method, which involves calculating the gas, oil, tires, insurance, registration and license fees, as well as depreciation. Salaries and wages. Sole proprietors took 8. Business owners can deduct the cash, property or services they pay their employees, as long as it is a reasonable wage, and it is based on the services they perform. They can pay employees through wages, salaries, bonuses, commissions or noncash compensation, like vacations or fringe, as long as they follow specific requirements. The Diamond In The Window Book. Certain employees might also qualify for employment credits, such as empowerment zone, Indian employment, work opportunity or differential wage credits. Best accounting software for small businesses with pricing, reviews, top alternatives, comparison. Get best business account software demo with free consultations. Rent. Sole proprietors took 4. Any rent used in trade or business is tax deductible in the year it is paid, but a business owner cannot receive equity or be in the process of purchasing the property. If you work in your home, you can deduct the amount of space you use for business. You can also deduct any additional taxes from rent you pay to the lessor. Source Internal Revenue Service, SOI Tax Stats, 1. By Jessica Mathews, special to CNBC. Weve rounded up the best smallbusiness loans for minorities, including options for fast cash, bad credit borrowers and strong businesses. The CNBCSurvey. Monkey Small Business Survey was conducted among 2,2. Aug. 1. 0 and Aug. The survey data used Survey. Monkeys online platform and was based on its survey methodology.