Freebies and discounts tax deductable?

Discussion in 'Lawn Mowing' started by walker-talker, Jan 28, 2005.

  1. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Say you are offering 3 free mowings with yearly contract. Ok...say it's an average lawn of $30 per mow. Could you write off $90 as an advertising expense? What if you actually charged for say 30 mowings for the season and then at the end of the season wrote them a check for $90....would it matter if you did it this way?

    What about a discount the same way?

    Just curious? Personally, I look at a discount or freebie as part of the advertising expense, I just not sure if Uncle Sam has the same view as I do.

    Thanks
    Matt
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Probably not Matt. My take would be you should talk to your accountant about this...especially if ya do alot of it too.
     
  3. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I just called my accountant (my dad, who is a retired IRS auditer) and he said either way...it is deductable...so to speak. After he explained it to me...it's so simple and now I feel like it was a stupid question on my part....lol. 30 mowings @ $30 a mow = $900 for the year. You can give them 27 mowings and pay income tax on that $810 or collect the $900, deduct the $90 and pay income tax on the same $810. Now that I am thinking about it...I don't know what the hell I was thinking...not enough sleep latley.

    Goodnight
    Matt
     

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