Are products purchased for Product Reviews considered a business expense?

[Jobs for 14]

I own an LLC that creates websites. I want to create a site that does product reviews. Can I write off the products I review (tech equipment, game consoles, purses, etc) as business expense?

[ndcole78]

If it's for your business, then yes you can write it off as a business expense. Make sure that you keep the receipts though. Heck, if you use your cellular phone to conduct business, you can even write that off.

[talewins]

You run into the term "exclusive" when you begin writing off expenses. "Is this room used ONLY for business purposes?" "Is your cell phone used exclusively for business purposes?"

As far as reviewing goes, once you can show samples most companies will GIVE you a copy just for the review. For example, you could approach your local media, paper, station, whatever, and offer to provide them with a review of the product you want to review. With that go-ahead nod you then approach the company to advise it that you are working on an assignment.
THEN, you ALSO publish that review on your site.
After you start getting lots of traffic, you can leave out the local media step.

[zapseo]

If you have an LLC, you should be using the services of a CPA or enrolled agent. They should be able to tell you how to regard your expenses and profits.

Getting accounting advice on a marketing forum is ... well, bad advice.
No professional worth their salt is going to give you advice on a public forum. So...who is giving you advice ?

Not quite sure what this question is doing in a copywriting forum, anyway.

Seriously -- it's important that you get appropriate accounting advice.

[Anthony.B]

Great question and I agree that professional advice from a qualified accountant is the best answer.

There is potential danger getting advice from sources other than that.

If you find a decent CPA, the costs you pay for their services should be well worth it.

Anthony

[amylimcd]

The IRS rule for business deductions is whether the expense is ORDINARY AND NECESSARY for your business purposes.

As long as you can make the reasonable argument that each product you buy is typical and necessary in order for you to engage in the activity that you are doing to make a profit, the costs can be expensed.

Now, of course this is one of those areas that are abused by small business owners. . . and so you want to be reasonable, keep all receipts and be able to document how you used it in a profit making activity. By going overboard and having too many items, etc. as compared to your business, you raise an audit red flag.

Definitely speak to your accountant who knows your particular business and the latest happenings at the IRS to get a definitive answer but as long as it is ordinary and necessary . . not overused or abused and documented, an expense is deductible.

[erinwrites]

Something else to think about: once you've established yourself as a reliable review source and have gained some popularity, companies will probably be contacting you for reviews instead of the other way around.