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I own a restaurant and currently offer a frequent diners reward

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club. For every 200 dollars...
I own a restaurant and currently offer a frequent diners reward club. For every 200 dollars spent they receive a 10 dollar reward on their card to use on their next visit. Last year our members redeemed about 11,000 in rewards. Is any portion of that 11,000 allowable as an advertising expense?
Submitted: 6 years ago.Category: Tax
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Answered in 14 minutes by:
3/2/2011
Tax Professional: MequonCPA, Certified Public Accountant (CPA) replied 6 years ago
MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Hi Susan and welcome to JustAnswer:

 

The is no deduction allowed for the redemption. Your sales have already been reduced by the $11,000 in rewards claims.

MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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MequonCPA
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