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How to Use Black Friday Deals to Maximize Business Savings

While most people see Black Friday as a chance to grab holiday gifts or home upgrades, small business owners and the self-employed can turn it into a strategic shopping day for business essentials – and save come tax time. Here’s a guide to using Black Friday wisely to ensure your spending supports your business goals and stays tax-deductible.

Smart Business Spending: Start with the Essentials

Yes, it’s tempting to stock up on all the great deals, but a purchase is only helpful if your business actually needs it. The IRS allows you to deduct expenses that are both ordinary and necessary for your business, but remember that tax deductions only save you money on your return – you still pay upfront. Avoid buying just for the sake of a write-off and focus on deals that directly support your work.

Here are two major areas where Black Friday deals can be a win for your business:

• Computers and Electronics: If you’ve been considering a new laptop, computer, or tech upgrade, Black Friday is prime time to save on these essentials. Most electronics retailers will have deals on computer hardware, and if you use a computer more than 50% for business, you can deduct the entire cost under Section 179. Don’t forget to track your business use – either through a dedicated log or by keeping the equipment solely at your workplace.

• Vehicles for Business: Many car dealers offer substantial Black Friday discounts. If you’re thinking of a vehicle for business use, know that you can deduct vehicle costs either by tracking your actual expenses or using the standard mileage rate. Keep in mind, though, that you’ll need a clear record of the business miles driven or a breakdown of all related expenses if you choose the actual expense method.

What Doesn’t Qualify for a Tax Write-Off?

Some items, no matter how great the deal, don’t count as deductible expenses unless they’re strictly business-related. Here are a few common ones:

• Streaming Services: Subscriptions to services like Netflix or Paramount+ aren’t typically deductible unless directly tied to business needs, like research for a content creator.

• TVs and Personal Electronics: Unless they’re used strictly for work (e.g., a screen dedicated to client presentations), TVs usually don’t make the cut for tax deductions.

• Personal Phone Plans: Only the portion used for business can be deducted, so a personal phone plan won’t fully qualify.

• Clothing: As much as we’d all love to write off new clothes, the IRS is strict about business attire. Only items that are required for work and unsuitable for personal wear (like scrubs or uniforms) qualify. So while a new suit is tempting, it’s best to leave it off the deductions list.

Maximizing Business Savings with a Strategy

To make the most of Black Friday, plan your spending around items that will help you work smarter and save on taxes. Big-ticket items like computers, office furniture, or business software are generally tax-deductible if they’re directly used in your business. Keeping a clear business purpose in mind can turn Black Friday into an efficient tax-saving tool, not just a consumer splurge.

A Little Room for Personal Treats

With all the business savings, you might just find room in the budget to treat yourself to some personal items. While these purchases aren’t deductible, they’re a well-deserved perk after setting up your business for success with tax-smart investments.

Black Friday can be more than just a sale day – it can be a strategic step forward for your business. Happy planning, and here’s to a tax-savvy shopping season!

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If you want more resourceson building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook

• The Roth IRA handbook

• The Self-Directed IRA handbook

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k