Can I write off sponsorship of local events?

Sponsorship expenses can be deductible as a business expense if they are ordinary and necessary for your business. This typically applies when the sponsorship is intended to promote your business, such as displaying your business name or logo at the event. However, if the sponsorship is primarily for personal reasons or does not provide a clear business benefit, it may not be deductible. For example, sponsoring a local charity event where your business name is prominently displayed can be deductible, but sponsoring an event solely because you support the cause without any business promotion may not qualify.