Small Business Tips

Tax Advice: 5 Small Business Marketing Deductions to Know

Despite what insults you quietly mutter about them around April 15, the Internal Revenue Service (IRS) does support entrepreneurs who apply a little elbow grease to their marketing. The IRS generously provides tax deductions for certain business expenses, such as the cost of printing business cards and other marketing collateral.

Small Biz Tax DeductionsIRS BENEFITS

Small business owners who frequently promote through traditional print ads, like flyers and postcards, should consult Chapter 11 of Publication 535, which qualifies advertising expenses as a tax exemption:

“You generally can deduct reasonable advertising expenses that are directly related to your business activities….You can usually deduct as a business expense the cost of institutional or goodwill advertising to keep your name before the public if it relates to business you reasonably expect to gain in the future.”

tax day filing

DEDUCTIBLE MARKETING EXPENSES

1. Initial Costs

The cost of starting your business can be deducted after you open your doors. Well-documented expenses up to $5,000 (meaning keep close tabs on those receipts) during the development phase can be deducted within the first year of business. This applies to payments necessary for operation, i.e. salaries and employee training as well as marketing and advertising.

open sign

2. Ordinary Marketing Expenses

What qualifies as “ordinary” marketing expenses? According to American Express, this means business cards, print ads, web banners, billboard rentals, etc. These can be fully deductible and have no dollar limit, so go ahead and splurge.

Tax theme business cards

Other expenses that do not receive the same special treatment include signage temporarily installed at a trade show or that will be used for over a year. Bummer, isn’t it? But you can write off travel expenses and registration fees if you promoted your business at industry events.

business traveler at airport

3. Design Costs

Did you hire a graphic designer to create those eye-catching posters? Believe it or not, it pays to design and print marketing materials. Costs associated with building your brand reputation are 100 percent deductible.

graphic designer

4. Direct Mail Marketing

If you allocate your budget for postcard advertising, those dollars and cents are tax exempt. Even postage paid for direct mail marketing or EDDM services are a deductible cost. To claim expenses for printing and postage, report them separately under Other Expenses on your Schedule C.

 Tax theme postcard advertising

5. Reseller Sales Tax Exemptions

Print resellers, like web-to-print stores, graphic designers and event planners, can catch a break by applying for a resale certificate in their state.

For print providers, do your due diligence and verify resale certificates, so the IRS doesn’t come knocking on your door for any uncollected sales taxes.

Map of US states with resale certificate

Conduct business across the U.S.? “Bear” in mind that some states, like California (get it?), will not accept out-of-state resale certificates. If you plan on crossing state lines for your purchases, consider applying for a multijurisdiction resale certificate.

Consult an accounting or tax professional on how to claim marketing expenses and other deductions for your small business.

Start printing your tax-deductible marketing materials at OvernightPrints.com today.

You Might Also Like

Taking Stock of Your Business Card Paper

Staycations That Will Improve Work Performance

postcard vs e-postcard

Where Print Marketing Wins

Top 5 list of Digital Designers you should know about!

Small Business Marketing Lessons from the Rose Parade

Black Friday Promotion – Spend $50 get $50

Will You Be My Valentine? How to Attract Customers

4 Reasons Why Brand Consistency Makes Sales

Top 4 Marketing Books That Will Transform Your Small Business

New Year, New Marketing Materials.

Become our No.1 Fan on Flickr, Twitter, or Facebook and Win 500 Free Business Cards!

Crazy March Media, Money & Marketing

Create a Simple Holiday Postcard in Photoshop- using the Clipping Mask, Warp Tool, and other Text Effects!

Upload your Business Cards for FREE – Overnight Prints’ new and improved online service

Top 5 Advice for Entrepreneurs on Small Business Saturday

Essential Print Marketing for the Tourism Industry

Small Business Story: Kristin Bleyenberg Design

Top 7 Ways to Spring Clean Your Business Marketing

Brilliant Art & Design Work

The Best 4 Marketing Tools for Branding a Professional Speaker

Skip The Rush By Shopping Small This Year

Halloween Print Products for October Promotions

Ready-to-Use Templates for Email Debt Forgiveness Day

Feel Good On the Outside And The Inside With JEUNESSE

Business Cards: Here today…Not Gone Tomorrow

The Most Powerful Red Logos in Marketing

Mini Business Cards

#InspireMe2017: Finance Tips

5 ESSENTIAL TIPS ON CREATING MESSAGING FOR COMPANY GREETING CARDS

5 Budget-Friendly Print Products for Small Businesses

Best business cards

Top Sites and Useful Resources for Freelancers

What Chlorine Free Means

5 Best Custom Business Card ideas from Small Business Customers!

Address Labels are now available at OvernightPrints.com

16 Secrets to a Successful Black Friday

Trade Show Tips to Steal

Overnight Prints Web Commercial – how we made it!

Small Business Conference Planning Checklist

4 Reasons to Use Direct Mail Marketing

Be a Showstopper at the Las Vegas MAGIC Convention

Mom & Pop Shops That Made it Big

Make your own Holiday Gift Stationery at OvernightPrints!

Steve Jobs 1979 business card

Do Your Business Cards & Marketing Materials Need Revamping?

Print vs. Digital: Where to spend your ad dollars

Stop Bailing on Mailing (Services)

Tips on Creating Direct Mail Services for your Small Business

Increase The Productivity Of Your Business

Stand Out From The Crowd By Using Spot-UV

Overnight Prints Magazine Discount

Start Being The Best You!

Promote yourself – 50 self-promotional tips for Graphic Designers & Freelancers

New Year’s Resolution: Dance Away

3 Best Print Product Ideas

Secure Customers Before and After Cyber Monday

5 OF THE BEST SMALL BUSINESS/SMALL BUDGET MARKETING IDEAS!

Tell Your Story With A Business Card

Not Convinced? Free Samples To Change Your Mind!

Death of the Business Card?

QR Codes in Posters and Mini BCs

Going The Extra Mile: OvernightPrints.com Mailing Service

5 ways to add value to your business cards

Brochure Minimalism

A Paperless Society

10 Tips on Creating a Brochure

New Custom T-Shirts Designer Is Available!

Are You a Shark in Business?

Revolutionary Skin Cream Reverses Time Naturally

Presenting the Pocket Folder

How one photographer used savvy marketing to skyrocket his leads

Roses are Red

Create a design portfolio booklet at Overnight Prints

Shop the Story!