Coupons = Tax write-offs? (advertising expense???)

[system]

Can you write-off the face value of a coupon as a business expense for SE tax? Let’s say I give somebody a free pizza, worth a $XX.XX value… do I deduct the coupon’s value of $XX.XX or just the cost to produce the product?

Thank you!

 

[pizzapad]

I think the rule is as follows:

If you want to write off the discounts, you must pay the sales tax on the original sale price.

OR

Report the “net” selling price, pay the sales tax on only the actual $ collected.

Not an accountant but that’s how it was explained to me.

good luck!

 

[system]

The way my accountant explained it, you’re already writing off the food cost. Nothing else to write off.