Hasta La Creative!

If you’re reading this you are likely in the business of advertising. That means you will be impacted if any tax provision or bill is passed by Congress that changes the long-held deduction of advertising costs. This is a possible outcome of the current battle over tax reform in Washington, D.C.

For decades, U.S. businesses have been allowed to deduct 100% of advertising costs as an ordinary and necessary expense. But the approach being considered by the House Ways and Means Committee, under Chairman David Camp (R-Mich.), seeks to have businesses deduct only 50% of costs in the year the advertising runs and amortize the deduction of the remaining 50% over 10 years.

The proposed curtailment of the ad-tax deduction is part of a larger movement toward overall corporate tax reform. Some members of Congress seek to bring the current 35T corporate rate down to 25%. Changing the advertising deduction is one of several means being considered to fund this rate reduction.

Continue reading at AdAge.com