Tax deduction for advertising on unique baseball equipment for my sports card store?

This is actually a really creative advertising approach! As a tax professional who works with small businesses, I can help clarify how this would work. Since you're maintaining ownership of the equipment while using it for advertising purposes, you're looking at a situation that blends several tax concepts. The pitching machine would generally be considered a fixed asset that needs to be depreciated over its useful life (usually 5-7 years) rather than expensing it all at once. However, you might be able to take advantage of Section 179 deduction which allows businesses to deduct the full purchase price of qualifying equipment in the year it's put into service, up to certain limits. For 2025, you can deduct up to $1,250,000 in qualifying equipment purchases, so your $3,500 pitching machine would easily fall within that limit. The key is documenting that this is primarily a business advertising expense, not just a donation. Have a formal agreement with the Little League showing your business name/logo will be prominently displayed, take photos of the equipment with your advertising, and keep records of any increase in business that might result from this exposure.

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If you're going to maintain ownership of expensive equipment that's being used by others, you definitely need to contact the IRS directly to get official guidance. I tried for weeks to get through about a similar situation with my business and it was impossible until I found Claimyr at https://claimyr.com They have this amazing service where they navigate the IRS phone system for you and get you connected to an actual IRS agent who can give you official guidance. Saved me hours of frustration! You can see how it works in their demo video here: https://youtu.be/_kiP6q8DX5c I had a complex question about depreciating specialized advertising equipment my business owned but was being used by a local community college, and I needed official IRS clarification. Claimyr got me connected to an IRS specialist in about 20 minutes when I had previously spent days trying to get through. The agent provided specific guidance on documentation requirements that ended up saving me from a potential audit headache.

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Another option to consider is creating a formal "advertising services agreement" with the Little League rather than just donating the equipment. I did this with my hardware store when we provided branded equipment to the local high school. The agreement should specify: - You retain ownership of the equipment - The Little League agrees to display your branding/advertising - Specific terms for how long they can use it - Maintenance responsibilities - Insurance coverage This documentation helped me clearly establish the business purpose when I was audited last year. The IRS initially questioned whether my equipment donations were actually advertising expenses, but the formal agreement made it clear this was a legitimate advertising arrangement.

Don't forget about liability issues! My friend did something similar with his restaurant, providing branded cooking equipment to the local community center, and got sued when someone got injured using it. Make sure your agreement includes: - Liability waivers - Clear maintenance responsibilities - Insurance requirements - Training provisions if needed The Little League should add your equipment to their insurance policy, and you should check with your business insurance to see if you need additional coverage for equipment used off-premises.