Can we write off sponsorship of an event?

by Bob McCabe, CPA 

The head of our company is taking part in a mountain climbing event for which the company is also a sponsor. Can we write-off the cost of the sponsorship in this situation?

Perhaps. The IRS says for an expense to be deductible, it must be "ordinary and necessary." An expense is necessary if it is appropriate and helpful to the business. An expense is ordinary if it is one that is common and accepted in the particular business activity. To properly make a determination if your company can legitimately write off the expense, you need to supply more information. I suggest you consult your firm's CPA regarding this matter.

Bob McCabe is principal of McCabe & Associates PhDs. You can reach him at (909) 302-8499.

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