Thanks Annette for your reply. There seem to be conflicting answers everywhere I look. I hope you not mind answering a couple of follow up questions.
1. One expense I will incur is paying the staff member who performed the service. (All GC's were for specific services only). Can I deduct the commission I paid the IC to perform the service? If so, under what section would I do so? And if not, would you please explain why not. Just realized that would be deducted under payments to IC's. What about the opportunity cost? Does that play a role in this, since I gave an appointment that could have otherwise been booked by a paying client.
I'm still trying to wrap my mind around this. I gave quite a few gift certificate prizes away at a 10th Anniversary event. I wanted potential new clients to try our services in hope that they would become regulars. It's tough to see how that can't be an advertising expense, at least the 50% that I would normally receive from the service.
2. Would it be possible to deduct each giveaway as a gift? I would prefer option one above to be acceptable, as all services are above $25.
@AnnetteB6
