Question

Larry would like to advertise using a $100,000 boat with the name of his company name printed on the side. This is his only form of advertising. Is this deductible?

Answer 1

Businesses may deduct all ordinary and necessary business expenses, including advertising expenses.
The IRS stipulates that a deductible business expense, which includes advertising, must be ordinary and necessary.
According to the federal tax agency, an ordinary expense is one that is commonly accepted in a particular line of business. Generally, most businesses that can afford to advertise do so. Therefore, most advertising costs are ordinary business expenses.

Advertising is a broad category of business expenses that includes business activities such as:

• Advertising in various media like newspapers, TV, internet, cable, and magazines
• Marketing activities, such as direct marketing.
• Promotional and public relations expenses, like sponsorship of sports teams and promotional items like mugs, caps, t-shirts, and pens.
• Online activities such as email newsletters, pay-per-click advertising, and SEO services
• Costs of producing advertising materials such as business cards, brochures, and web pages.
• ​​​​​​​Costs of advertising events such as a publicity campaign or special promotional event.

You may not deduct costs that are primarily personal, even though they may have some promotion value. For example, if your daughter is getting married and you invite some of your best customers for the wedding, you can't deduct the wedding costs.

According to this provision
SINCE Larry advertise using a boat with name of his comapany name printed on it,
LARRY CAN DEDUCT THESE EXPENSE FROM HIS FINANCIALS.