Understanding Marketing Tax Deductions

Marketing is a necessary expense in running practically any business and the IRS acknowledges as much. You may run advertisements on or in the Internet, radio, television, magazines, newspapers and other media to sell your products or services. You should be deducting all of the associated costs on your tax returns.

Ordinary Marketing Expenses

Marketing costs must be "ordinary and necessary" business expenses in order to be deductible. Put in layman's terms, you marketing must be reasonably related to the promotion of your business and the expense amount must be a reasonable amount.

Deductible Marketing Expenses

Common deductible marketing expenses include the costs associated with the following items:

A. Yellow Page Advertisements,

B. Business Cards,

C. Advertisements in print media such as newspapers,

D. Telemarketing,

E. Business Cards,

F. Web site costs including creation and maintenance,

G. Costs for Advertisements on the Internet,

H. Billboards, and

I. Graphic design costs.

Goodwill Marketing For Your Business

Marketing that is intended to portray your business positively can be deducted. Such marketing creates a long-term potential for business and, thus, falls within the ordinary and normal requirements of the tax code. Examples of such marketing include:

A. Sponsoring local youth sports teams,

B. Distributing samples of your business product, and

C. Costs associated with prizes offered by your business in a contest.

As long as your marketing expenses can be reasonably related to the promotion of your business, you should be deducting said expenses from your gross revenues. If you failed to claim any such expenses on your tax returns, your probably overpaid your taxes.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

In The News:

17 Nice-Try Tax Breaks Rejected by the IRS  Kiplinger's Personal Finance

Fraudulent Tax Shelters ? KMPG Goes Down Hard

In the largest criminal tax case ever filed, KMPG has... Read More

Understanding Basic Tax Terms

If your like many, you don't always understand what people... Read More

Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money

Why a Corporation Helps Save You TaxesThe Tax Rates (Notice... Read More

Correspondence From The IRS ? Yikes!

It's a moment every person dreads. You pick up the... Read More

Know A Tax Cheat? Get Paid To Tell The IRS

According to the IRS, taxpayers underpay their taxes by some... Read More

Truly Bizarre Taxes: The Tax on Illegal Drugs

One can never underestimate the enthusiasm that politicians have for... Read More

Electronic Commerce Taxation and Pakistan

Assume a buyer in Pakistan downloads software from the Internet... Read More

Tax Reform, My Way

We need real tax reform and we need it now.... Read More

Tax Investigation - What You Need To Do

The knock on the door from a Tax Inspector is... Read More

Euro Tax Haven Threat

Media reporting of a new EU savings tax directive has... Read More

To Tax or Not to Tax - This is the Question

To tax or not to tax - this question could... Read More

Your IRS Tax Appeal Rights

Are you in the middle of a disagreement with the... Read More

The Internet Tax Man Cometh

Q: I was contacted by the city tax collector to... Read More

Send Your Kids To Summer Camp and Write It Off

If you paid someone to care for a child so... Read More

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction

Most people look forward to getting their tax return, but... Read More

Small Business Tax Deduction - Write-Off Bad Debts

Practically every small business has receivables that it cannot obtain... Read More

How to Donate Your Car to Charity and Get Tax Deduction

Donating your used car to charity is a win-win situation;... Read More

How To Get An Instant Pay Raise

As a gentleman was leaving my class recently, he wanted... Read More

Tax Trap #2 -- Double Taxation: Isnt Once Enough?

Have you been thinking about incorporating your small business or... Read More

Requirements To Produce Tax Information (Whats Up With That?)

"What we've got here is a failure to communicate." ... Read More

SFR Substitute for Returns: IRS Action on Non-Filers

In the latest Star Wars episode, the evil empire executes... Read More

Paying Workers ? What Can You Write-Off?

As your business grows, you are going to need help.... Read More

History Of The Federal Income Tax

The powers of Congress, and the limitations set upon those... Read More

A Taxing Investment

April 15 - The most dreaded day of the year... Read More