Is this tax deductable? (1 Viewer)

[Jeremy Illingworth]

If a local business give money to a bowling team for team shirts that will bear the name of the business is that tax deductable as advertising?
jeremy

 

[Tom Meyer]

I'm no CPA or Canuk for that matter, but advertising isn't tax deductable and donations are (as far as I know) only deductable if made to tax exempt organizations (eg Red Cross, Unicef, Salvation Army). Now, if he donated $$ to the local boys club who then used it to buy uniforms, that might be deductable. But, probably not if he then had his company logo printed on it.

 

[Jeff Ulmer]

I would say it would be, since advertising is a legitimate business expense, but only your accountant could tell you for sure.
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[Steve Berger]

I have been a small business owner for over 20 years and almost anything with your company name is advertising. The only time you could have problems with deducting it is if the item is for your personal use. You could for instance deduct the cost of putting a sign on your car but might not be able to deduct or depreciate the car because you use it for commuting. Donations , on the other hand , unless you are a corporation , are personal deductions , not business deductions and can only be deducted on your personal return subject to many limitations. At least this is true in the USA. Canadian rules may be different however, but I would hope the basic concepts would be similar.
[Edited last by Steve Berger on October 14, 2001 at 10:32 PM]