How to Deduct Business Advertising Expenses From Your Taxes
From vinyl car wraps to interactive websites, they are countless ways to promote your business these days. However, these tools can often require a significant investment, which you’ll want to deduct from your annual tax bill. Here’s what you need to know before tax season.
Which Business Advertising Materials Are Tax Deductible?
According to the IRS, you can deduct any costs you spend in an effort to market your business to potential clients. This includes making business cards, producing a radio ad, hiring someone to create your website, or even sponsoring a sports team to get your company name on the stadium wall. You can also deduct expenses for putting on events to market your business, as well as the promotional materials you use to raise awareness about these events.
What About Ads on Vehicles?
The IRS makes a clear effort to distinguish between the permissible and unacceptable in this specific circumstance, so it’s important to study the fine print. If you were to pay to design, print, and install an advertisement on your vehicle, such as a custom car wrap, you could deduct these expenses as advertising costs. Better yet, you can deduct them regardless of whether the wrap is installed on your personal or business car.
However, although you’ll be advertising your business as you drive your vehicle around town, the IRS draws the line here when it comes to legal deductions. You can’t deduct the expenses of driving your car, such as gas and maintenance prices, as business advertising. If the car wrap wasn’t there, you’d still be driving around just as often.
When you want to install a car wrap and build brand awareness, turn to DTM Signs and Truck Wraps to design your own promotional materials. From business cards to vehicle wraps, this Brooklyn, NY, company offers a wide range of signage products to help you spread the word. To learn more about their printing, vinyl cutting, and installation services, visit the website. Call (347) 312-5488 to make an appointment with a designer today. They also have financing available.
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