Picture it…you walk into your favorite yoga class. You can’t wait to tell everyone about the new product/service in your shop.
Your friends are interested! They love hearing about the new product/service and can’t wait to try it out. They’re going to swing by later this week and pick it up or order it online.
YES! Not only do you get to help your friends get something they need/want but they are buying it from you win-win!
So you run the yoga class fee through the business because it’s a business expense right? You were there ‘selling’ your product and people are now buying it! Unfortunately a hard NO!
I’m sorry to say it’s not. I know…c’mon IRS! Can’t we stay fit AND market at the same time?
As a business owner, you can only deduct the costs of marketing efforts directly related to your business activities. I’m sure you can guess the typical things that are deductible:
Social media advertising, banner ads, PR expenses, SEO services, email marketing, print advertising…you get the gist!
Not deductible? Personal hobbies (even if business associates are involved).
I know it stinks- I don’t make the rules I just want you to know them!
Make sure your books are legit and you’re not taking deductions the IRS won’t allow.
Need help? That’s what we do! I give free calls if you’d like to chat. Link on my website for my calendar!