Event Planner: Supplies vs Promotional Deductions

[4Cordelia]

I started an event planning business in 2024.  As I'm just getting started, I purchased items to make  decorations and items to give away at the events instead of purchasing ones already made.  I also raffle off some of these items at the event as a promotional, some are just giveaways for attending. Some I keep for the next event.

I have received several new bookings as the client said every time they looked at the item they "won" they thought about the event they had attended and wanted to book another event with me. 

SO.   everything I'm purchasing, which category If I keep the item vs giving it away? 

ie: table cloths, centerpieces, decor I create for a client's event, but I retain as they don't want them, bags of goodies, etc. 

I'm just confused as to what constitute supplies vs misc. expenses promotional/advertising. 

Thank You 

[Vanessa A]

If you are purchasing these items to gain more customers you would list them as advertising or promotions.  This applies whether you keep the items for the next event or give them away during an event. 

If you are buying items that are meant directly for use with the client then that would be supplies.  

Overall, it will not have an affect on your return which category you use if you label a few dollars to the one side versus the other because it can be used for both.  Both of these expenses are deducted $1 for $1 and lump summed into the total expense deduction.

[4Cordelia]

Thank you so much!  That is exactly what I needed.