As a business owner, you can generally deduct advertising expenses on your Schedule C, which is used to report business income and expenses on your individual tax return. Advertising expenses are considered ordinary and necessary expenses of running a business, and may include:
- Print and online advertising: This can include costs for placing ads in newspapers, magazines, trade publications, or online ads on social media or search engines.
- Business cards and other promotional items: The cost of creating and printing business cards, brochures, flyers, and other promotional items can be deducted.
- Website and SEO: Expenses related to creating and maintaining a website, such as hosting fees, domain registration fees, and search engine optimization (SEO) services.
- Outdoor advertising: This can include billboards, banners, and signs.
- Sponsorship and event expenses: The cost of sponsoring an event or advertising at an event may also be deductible.
It’s important to keep accurate records and documentation of your advertising expenses, such as receipts and invoices, in case you are audited by the IRS. Additionally, some advertising expenses may be subject to limitations or other rules, so it’s a good idea to consult with a tax professional to ensure that you are taking all the deductions you are entitled to.