Who can resist those adorable little ghosts and goblins who haunt the streets on Halloween? If your business is situated on a high-trafficked trick-or-treating thoroughfare, you may fork over a wad of cash in purchased candy before those pint-sized little spooks are tucked in for the night.
Can you write off the costs of those treats as a promotional expense for your business? With a little pre-planning you can use candy to shave a few bucks off your commercial tax bill. Hey, every little bit counts, right?
If you hand out packaged candy imprinted with the name of your business, or if you include any marketing collateral in a goodie bag — such as a brochure or business card — it’s a tax-deductible promotional expense.
For those wanting to satisfy a sweet tooth, it gets even better. Shower those in your business network with sweets and treats and you can write those off, too. Candy given out at a promotional event to market your business is also deductible, as are treats handed out at a business meeting.
Be sure to check local ordinances before taking deductions for state and local taxes. Also, keep all receipts. You’ll need those at tax time.
While you can’t deduct candy that doesn’t directly promote your business, you can donate unopened bags of goodies to IRS-approved charities such as Operation Gratitude and Soldiers’ Angels. Such gifts can be deducted on your personal income taxes.
Plan ahead and scare up some tax savings!