One big tax issue is what all you can write off for your business. And a bit one of these is what counts as advertising. I’m going to go over some ideas in this article about what you can and cannot use for your direct sales business. Please remember that i am not a tax accountant and that I am located in Canada. Please talk to your tax accountant for the most accurate advice.
The general rule of thumb when it comes to advertising is that you have to be able to attribute it to the business. If you cannot say that it is for the business, or directly related, it can be difficult to justify it.
For instance, let’s say you buy some new clothing for your business. Typically, you cannot write it of… but… if it is logo clothing with the name of your company on it, or has some saying on it like “talk to me about earning free product” or “girls night in – ask me more”, that can be written off. That would qualify as it is directly related to your business. If you buy clothing, non-logo’d, and only use it for your business; it can be a bit trickier and I likely wouldn’t use it as a write off.
Another type of advertising is doing trade shows/vendor events. These are a write off which is pretty obvious. Do your best to get a receipt so that you have something stating what you paid and that you can put in with your tax time papers.
If you put in ads anywhere that cost you money, this is advertising. Again, this is pretty obvious but as this article is about types of advertising you can write off, I am including it.
If you give away any type of product for people to try, or for a door prize, you can also write this off as an advertising expense. And don’t forget to make sure that your label is on it somewhere so you can get repeat business!