How do I deduct are promotional items tax deductible on my taxes?

Promotional items are deductible as advertising expenses if they are ordinary and necessary for your business. This includes items like branded pens, mugs, or other merchandise given to clients or potential clients. However, the items must not be lavish or extravagant and should have a clear business purpose. Items given as gifts may be subject to different rules, such as the $25 limit per recipient per year. To qualify, the promotional items should be directly related to your business and used to generate future business. For example, handing out branded keychains at a trade show would typically be deductible.