What's deductible?
- Online advertising (Google Ads, Facebook/Instagram Ads, TikTok Ads, LinkedIn)
- Website design, development, and hosting
- SEO and content marketing services
- Business cards and printed materials
- Signage and banners
- Promotional products (branded pens, shirts, etc.)
- Email marketing platforms (Mailchimp, ConvertKit)
- Social media management tools
- Trade show booth fees
- Sponsorships of local events
Lobbying and political advertising
One exception: money spent on political advertising, lobbying, or influencing legislation is generally NOT deductible. Advertising for your business = deductible. Advertising for a political cause = not deductible.
Example
Your annual marketing spend:
- Google Ads: $3,600
- Facebook Ads: $2,400
- Website hosting + domain: $240
- Email marketing tool: $360
- Business cards: $50
- Local sponsorship: $500
Total deduction: $7,150
IRS Reference
Advertising costs are deductible under IRC Section 162 as ordinary and necessary business expenses. Report on Schedule C, Line 8 (Advertising).
Advertising costs are deductible under IRC Section 162 as ordinary and necessary business expenses. Report on Schedule C, Line 8 (Advertising).
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