Starting Your Business

What are Business Expenses

Advertising Expenses
          

You generally can deduct reasonable advertising expenses if they relate to your business activities. Generally, you cannot deduct the cost of advertising to influence legislation.

You can usually deduct as a business expense the cost of institutional or "good will" advertising to keep your name before the public if it relates to business you reasonably expect to gain in the future. For example, the cost of advertising that encourages people to contribute to the Red Cross, to buy U.S. Saving Bonds, or to participate in similar causes is usually deductible. You can deduct reasonable advertising expenses if they are related to your business activities.

Important References:

Publication 334 Tax Guide for Small Business
Publication 535 Business Expenses
Schedule C (Form 1040) Profit or Loss from Business
Instructions for Schedule C (Form 1040)