As a small business owner, you may be able to deduct advertising and marketing expenses that help them bring in new customers and keep existing ones. Even better is that these deductions help small businesses save money on their taxes.
Generally, small businesses can’t deduct amounts they pay to influence legislation, which includes advertising in a convention program of a political party or any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate. Here’s what else you need to know about this valuable tax deduction:
Advertising and marketing costs must be ordinary and necessary.
An ordinary expense is one that is common and accepted in the industry. A necessary expense is one that is helpful and appropriate for the trade or business. An expense does not have to be indispensable to be considered necessary. Advertising and marketing costs that are ordinary and necessary are tax-deductible.
Advertising expenses include:
As always, don’t hesitate to call if you have any questions regarding tax deductions that benefit your small business.
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