Tax deductions are a great way for you to lower your business tax bill. Deductions help offset the amount your business has to pay by taking into consideration the costs of doing business. There are many tax deductions available to businesses, and one of the largest categories of these deductions is marketing and advertising expenses.

Small business advertising and marketing costs may be tax deductible

IRS tax law allows businesses to deduct expenses that help them bring in new customers and keep existing ones. These costs include expenses for advertising and marketing. Here are some details about this valuable tax deduction that can help small businesses save money on their taxes.

Advertising and marketing costs must be ordinary and necessary to be tax deductible.

  • An ordinary expense is one that is common and accepted in the industry.
  • A necessary expense is one that is helpful and appropriate for the trade or business. An expense does not have to be indispensable to be considered necessary.

Here are a few advertising expenses that are usually deductible:

  • Reasonable advertising expenses that are directly related to the business activities.
  • An expense for the cost of institutional or goodwill advertising to keep the business name before the public if it relates to a reasonable expectation to gain business in the future. For example, the cost of advertising that encourages people to contribute to the Red Cross or to participate in similar causes is usually deductible.

Generally, small businesses can’t deduct amounts they pay to influence legislation, which includes advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate.
Mail South Jersey can help you reduce your tax liability, while bringing in new customers.  That’s a win-win for local businesses, especially those that had a profitable year in 2022. For more information, call us at (856) 673-3277.

Mail South Jersey LLC does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Get the calls you need, from the neighborhoods you want!

Don’t just sit around hoping the phone will ring.

Get the calls you need,
from the neighborhoods you want!
Mail South Jersey produces direct mail postcards that help small businesses like yours grow. Our large sized, high quality cards allow you to reach the specific neighborhoods you want to target.
Direct mail offers the flexibility to:
  • Exclude apartment complexes, condos, HOAs, etc.
  • Target by income.  Even the best zip codes have good, better and best neighborhoods, direct mail allows you to zero in on the homes you want.
  • Reach across zip code boundaries.  Direct Mail allows you to spread your marketing dollars to reach the homes that are most likely to respond to your mailing, offering a much higher return on your advertising investment than other forms of advertising.  There are no predetermined “zones”, and no deadlines.  You pick the routes, and you pick the mailing date!


Mail South Jersey now offers Full Service Every Door Direct Mail. We do all the work for you, “from soup to nuts”.  We will design a mailer customized to meet your specific marketing goals. We print your marketing message on our high-quality UV coated card stock.  We help you select the right mailing areas for your business. Once your mailers are ready, we process the necessary paperwork and bring the finished piece right to the local post office for fast in-home delivery (usually within 1-3 business days!).
 Make this spring your best season yet.
Give us a call for a free quote!
(856)673-3277     (215)543-6108

Stretch Your Marketing Budget with Co-op Advertising!

There’s an old saying that says “there’s no such thing as a free lunch”, but did you know that there IS such a thing as FREE ADVERTISING FUNDS?   It’s true, that in many cases someone else will pay for your direct mail marketing program via cooperative, otherwise known as “co-op” advertising!  Co-op advertising is a way for a business owner to pass part – or even all of a direct mail campaign to a supplier, or multiple suppliers (usually manufacturers or distributors). Some co-op programs fund as much as 100% of the cost of an advertising campaign.  Manufacturers and distributors love Co-op advertising for their national brands because it drives traffic to local business who sell their brands.

Shocking fact:  Most co-op dollars go unspent every year. Why? Because business owners don’t bother to go after these dollars. Why not? While this money IS “free,” it’s not “easy money.” It’s not difficult, but it is a process! Once you learn how to follow-the-money, and you understand the necessary paperwork, it’s not that difficult. As an alternative,  you can ask your direct mail specialist if they will do the paperwork for you.

Here’s how a typical co-op advertising plan works: The local business owner accrues co-op advertising dollars based on their purchases from a manufacturer. Generally, these accruals run 1% to 5% of the business’s total purchases from the manufacturer/distributor. For example, if you purchased $10,000 of product this quarter from a participating vendor, and they co-op 2% of quarterly purchases, they will reimburse you $200, for your direct mail postcard that features their product(s). Keep in mind that co-op plans vary, and manufacturers impose various guidelines. So, yes, you’ve got to do some homework and some paperwork to find the “free” ad dollars. But they are there. How do you find out about manufacturers’ co-op plans?  Your product’s sales representative should know about co-op plans they offer.

To find out which products you carry offer co-op, list the 5 or 10 top national manufacturers that supply most of your products. Call the manufacturers’ rep who handles your account (or the people who wholesale the products you carry). They are always looking for new ideas to move their products.

Every manufacturer works a little differently, each with specific guidelines you’ll need to follow. Some will provide pre-approved direct mail ads, others will expect your advertising rep to handle the layout (usually requiring submission for approval by the manufacturer prior to printing).

You should also expect to submit some documentation to the manufacturer or distributor after your postcards are mailed, and each supplier will have different requirements. Incomplete or incorrect documentation will delay the reimbursement of your funds, so make sure you cover all the details. Postal statements may be required, as well as a pdf file or a hard copy of the direct mail piece. Sure, this may seem a little overwhelming, but once you get the hang of it, it’s usually a simple procedure.

Most co-op plans expire on December 31st of each year.  Any funds that you have accrued probably expire on this date and do not roll over.  In other words, use it or lose it!

Remember that while it may seem like a lot of effort to get co-op dollars, when that reimbursement check comes in, it will all have been worth it. Of course, by then, you’ll already be reaping the benefits of a successful direct mail campaign!

The information provided is an overview of a typical co-op advertising program.  Actual plans vary.  For more information, contact your representative or have your supplier contact your direct mail specialist directly.