- October 12, 2017 at 7:38 pm #108138
I own a fairly large dog training school that offers dog daycare, grooming, boarding, etc. We offer a complimentary visit to each new client as a type of promotional or marketing tactic. We also give away complimentary baths, nail trims, groomings, etc from time to time to our clients.
So here’s my question; can these complimentary first time visits be considered marketing expenses? And can the other complimentary services be considered gifts?
Thanks in advance for your help!October 12, 2017 at 7:47 pm #108944
Hi Ashley, yes the complimentary first time visits can be considered marketing expenses. In addition, the free services that you provide can be considered gifts. However, there is a limit of $25.00 per client that the IRS allows for these type of write-offs. You can find more info on what is deductible for tax purposes in IRS Pub 463, here is the link: https://www.irs.gov/pub/irs-pdf/p463.pdf.
Thanks so much for reading!