Write-Off These 10 Business Marketing and Advertising Expenses and Save Money

 

Did You Know Business Marketing and Advertising Expenses Are Tax-Deductible?

If you own a business and spend any money at all to bring in new clients and retain old ones, you might ask yourself, "Can I deduct my marketing expenses?"

The IRS tax law allows businesses to deduct marketing and advertising expenses that are ordinary and necessary. Ordinary expenses are ones that are common and accepted in the industry and necessary expenses are ones that are helpful and appropriate for the trade or business. 

10 Marketing and Advertising Expenses You Can Write Off

Now that you know that it is definitely possible to write off your business marketing and advertising expenses you might ask yourself, "What marketing expenses are tax-deductible?" 

The IRS says that any reasonable advertising or marketing expenses that are directly related to your business are able to be written-off. 

Now, the IRS isn't exactly specific on what is tax-deductible and what isn't. Therefore, we have narrowed down all the various strategies to give you the 10 most common marketing and advertising expenses that you can write off! 

1. Social Media Expenses 
2. Giveaways 
3. Online Advertising 
4. Print Advertising 
5. Web Development 
6. Multimedia Advertising 
7. Promotional Products 
8. Technology and Marketing Softwares
9. Special Promotions
10. Consultant or Marketing Agency on Retainer 

Social Media Expenses 

It has become so important over the years for businesses to have a social media presence. Creating accounts, creating content, engaging with followers, and posting to numerous social platforms is truly a full-time job. 

Thankfully the IRS allows businesses to write off these expenses. So hiring help to manage those platforms can ultimately save you time and now money versus trying to do it all yourself. 

Other social media expenses that are tax-deductible include, social media ad campaigns, utilizing influencer marketing, and any pro subscriptions such as LinkedIn Premium.

Giveaways 

People love giveaways and they are a great way to get information from or gain prospective customers, gain followers, and promote your business. Because giveaways are typically an attempt to gain new clients and retain old ones, they are also tax-deductible. 

Online Advertising 

Most businesses are taking part in online advertising these days in an attempt to help gain new customers. Typically this is done by using Google Ads, Pay-per-click campaigns, and display banner ads. All of these types of online advertising are tax-deductible marketing expenses as long as they do not appear on political sites. 

Print Advertising 

With so many different types of print advertising out there for businesses to utilize you might be wondering which ones will be tax-deductible at the end of the year. Some common ones include business cards, brochures, mailers, infographics, newspaper ads, magazines, banners, yard signs, and even billboards. 

Web Development 

If your business is looking to build a new website or revamp your old one we have good news...web development is a write-off! 

There are a lot of different components to a beautiful, fast, mobile-optimized website that many people forget can be written off. These web-development tax deductions include design, development, management, hosting, content creation, blogging, and SEO. 

Multimedia Advertising 

Since there has been a shift to online and social media ads, multimedia ads still exist and can help a business grow. Various multimedia advertising strategies include TV commercials, streaming service ads such as Hulu, and radio ads all of which are tax-deductible. 

Promotional Products 

People love promo! Promotional products are a great way to give staff, prospective clients, influencers, and old clients a gift while promoting your business with your logo. There are a wide range of products that can be customized to your business and they are all able to be written-off! 

Technology and Marketing Software 

As a business owner, you know that technology and marketing software is your best friend. They are necessary to your business's success which is why the IRS says you can write them off! 

Examples of technologies and software that are tax-deductible are CRM's like Hubspot, scheduling software such as Buffer and Hootsuite, and any similar software that is directly related to your business. 

Another example of technologies you can write off for your business are any proprietary software such as our digital marketing tools.

Special Promotions 

It is important to get your name out there and in front of your target customers or clients. A great way to do that is through special promotions such as hosting seminars or webinars, sponsoring local events (as long as they aren't politically-related), or putting your logo on a local team's jersey. If your business is partaking in any of these special marketing promotions, a huge advantage is that they are tax-deductible.

Consultant or Marketing Agency on Retainer

It is very common in today's world for businesses to keep a marketing consultant or even a marketing agency on retainer. This is helpful as they will most likely be working with various marketing strategies that ultimately help your business gain and retain clients so therefore the expense is tax-deductible. 

Digital Marketing Tools You Can Write-off 

While all 10 of these marketing and advertising strategies are tax-deductible, it is still important to run them by your accountant before filing and make sure you are making the right moves for your business. 

We may not be accountants, but we definitely know all about digital marketing and how to increase leads online because we're in the business of building businesses. 

Not only do we have digital marketing tools for SEO, blogging, location targeting, and a reviews system that are tax-deductible but we also offer web development, promotional products, social media, and more. 

Fill out the form below to schedule a consultation and receive a FREE digital marketing audit! 

Guest Post by Reece Smith, EVP