If you own a business, you are going to spend money to promote it. Advertising costs are a fact of doing business. Most of these fees are deductible as long as the IRS determines them to be ordinary and necessary expenses associated with doing business.
The Internal Revenue Service has classified these expenses promotional normal cost advertising and public relations expenses.
Standard charges ads are common types of costs that you would expect to deliver, such as business cards, print media advertising, online advertising, TV commercials, radio ads, Yellow Pages advertising, billboard advertising, signs, and direct mail advertising.
if your site is advertising deduction or not depends on how you use it. If your site is strictly promotional or if it is the business of the company, such as Amazon, eBay, or overstock.com, will determine its position as a deduction.
Public advertising could distribute products sample of potential customers, membership in a relationship like Chamber of Commerce, and sponsorship of charity events and Little League team.
Promotional could give away door prizes or hold raffles for customers to win prizes. In these two cases, both the cost of the promotion and the cost of gifts and prizes form of income tax. If you are one of those hot dogs and soda trailers set up outside your place of business and you give away free food to the public in general, it’s all 100% tax deductible as opposed to the usual 50% for dinner and entertainment.
any amount you spend over $ 2000 a year for lobbying is not a tax deduction.
You should be careful not to mix personal and business expenses when it comes to advertising deductions. If you have an annual trip to the islands for the top sales people and clients, which represents tax. If you have a birthday party that part of the journey, it is not a tax deduction.
Be reasonable deductions for advertising costs. The Internal Revenue Service does it mean when say ordinary and necessary expenses. If you’ve been giving away a mountain bike at the top salesperson in every year for the last five years, but this year you give away Bentley because the top salesperson to be son-in-law, the deduction is not going to fly.
The Internal Revenue Service scrutinizes deductions small businesses because they expect you to make a mistake, or worse yet, trying to cheat.