BOGO AND TAXES

Forum|Forum|4 years ago
October 27, 2021
13 replies
126 views

I do a Christmas Buy Two Get One Free sale. Is there a write off on all the free service?

Best answer by BarbL

As Critter stated, there is no write-off for services given for free. However, any expenses related to those services would be deductible. For example, if you are a photographer giving away a free on-location portrait session and one print from the session, your mileage to the location and your cost of the print would still be deductible even though the time and your services would not.

Critter-3

Level 15

There is no "write off" for services given away ... you will simply have less income to report.

BarbLAnswer

Level 7

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jobejobieAuthor

Level 3

I am an LMT and I am giving free Massage Therapy sessions at my location. So I can use the cost of each package the client gets for free? (it is a physical certificate the are purchasing and getting for free after buying two certificates BTGO

BarbL

Level 7

If there are costs associated with the massage services, those will be deductible as business expenses. The value of the certificate is not deductible.

As an example, let's assume your sessions are each $100, and you use $10 in oils for each session.

For each of the first two visits, you will claim the $100 as income, and deduct the $10 as a business expense.

For the free session you will have $0 income and claim the $10 deduction for oils.

The $100 value of the session is not included anywhere - it is not income or a deduction.

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