Hi Sarah, I had this EXACT question a couple of years ago. I was told that I could NOT deduct the value of something I gave away unless it was something I had purchased. For example if I purchased a 100% gift card from Walmart and used it as a promotional giveaway, I can deduct it. If I gave away my own gift certificate with a value of $100, I can NOT deduct it. In my case we own a Salon & Spa and the gift certificate could only be used with our business.
I was told the same thing applies when reducing the cost of a service. For example, if run a promo trying to gain new spa clients that discounts a $100 service to $80. I was told that I can NOT deduct the $20 discount.
I will try to find the original question and answers and post a link here. Even though I knew it was for marketing purposes, the explanation as to why I couldn't deduct it also made sense.
UPDATE: This is the post where I asked the question. Annette answered it on page 1. I've taken her advice, but if something she stated is inaccurate or has changed, I'd love to know myself!
