Checkmark iconCan I Write This Off?

Can I write off branded merchandise?

TL;DR

Branded merchandise can be deductible as a business expense if it is used for advertising or promotional purposes.

Detailed Answer

Branded merchandise, such as items with your company logo, is deductible as a business expense if it is used to promote your business. This includes items like pens, mugs, or t-shirts given to clients or potential customers. However, the expense must be ordinary and necessary for your business. Personal use or gifting to friends and family without a business purpose is not deductible.

Where to Put It on the Tax Form

Schedule C, Line 8 (Advertising Expenses) for sole proprietors; similar lines on other business tax forms.

Real World Example

A small business owner purchases 500 branded tote bags to distribute at a trade show. The cost of these bags is deductible as an advertising expense.

Audit Risk & Documentation Tips

Keep receipts and documentation showing the purchase of the merchandise and its distribution for business purposes. Maintain records of events or marketing campaigns where the items were distributed to support the deduction.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

Small BusinessMarketing AgenciesRetailEvent Planners

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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