Marketing is great, right? Of course it is. It can drive sales, increase awareness, and stimulate word of mouth, among other things. However, there is another benefit of marketing that people may not know: many marketing expenses are tax deductible. That’s right! You can write off your marketing expenses. So not only does it pay to do marketing to attract business, but it also affects your bottom line by reducing your taxable income.

So what is deductible? Basically, 100% of your advertising expenses, be it advertisements on TV, radio, billboards, social media, as well as any direct mail campaigns.

Are there any caveats? Well, yes. The expenses must be directly related to normal business activities. This means basically donations and sponsorships are not deductible.

For more information, contact a CPA professional or the IRS.

Source: https://www.irs.gov/publications/p535#en_US_2017_publink1000209178