Advertising deductions
This article was originally published in The Tan Sheet
Executive Summary
Deductibility of advertising expenses will be reconsidered by House Ways & Means/Subcommittee on Select Revenue Measures at a hearing scheduled for Sept. 8. The subcommittee will review a proposal to require that 80% of ad expenses be capitalized and amortized over a period of years, allowing only 20% of expenses to be tax deductible in the first year. Currently, 100% of ad expenses are deductible in the first year. Members of the Ad Tax Coalition are expected to testify at the hearing in opposition to the proposal, which first surfaced in 1987 but has never cleared the House Ways & Means Committee. . . .