---
title: Invest in Marketing, Take a Tax Deduction
description: Reduce your 2023 tax bill while making an intentional investment in your business’s growth and health in 2024.  Read our latest blog post for more details on how prepayment of your 2024 marketing expenses can reduce your 2023 tax bill.
image: https://blog.gobonafide.com/hubfs/Untitled%20design%20(70).png
---

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# Invest in Marketing, Take a Tax Deduction

[![Colette Jensen](https://blog.gobonafide.com/hubfs/20210530_142237.jpg)](https://blog.gobonafide.com/author/colette-jensen)

 by [ Colette Jensen](https://blog.gobonafide.com/author/colette-jensen) on December 18, 2023 in

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Did you know that [tax law allows businesses to deduct expenses that help them bring in new customers](https://www.irs.gov/newsroom/small-business-advertising-and-marketing-costs-may-be-tax-deductible) and keep existing ones? Any marketing or advertising expenses spent on campaigns to generate or retain customers is eligible for 100% deduction from your total taxable income, if your business pays on a cash accrual basis. And under certain conditions, the IRS allows accelerated deduction of certain prepaid expenses, including expenses for advertising and marketing.

![Untitled design (70)](https://blog.gobonafide.com/hs-fs/hubfs/Untitled%20design%20(70).png?width=700&height=700&name=Untitled%20design%20(70).png)

Accelerated deduction of these expenses happens under the "12-month rule," which allows you to deduct a prepaid **future** expense in the **current** year. This lowers your current year’s tax obligation by pre-paying for future marketing expenses now. 

There are a couple caveats though. First, your business must pay its taxes on a cash accrual basis. Also, there’s a bit of a time limit on when you must use the services or products you prepay for. Any prepaid expenses that are deducted in the current year must be used within the next 12-month period from the time of payment. 

As a disclaimer, we are not offering tax or legal advice here. Tax rules can be complex, and there may be exceptions or specific conditions for certain expenses. Consulting with a tax professional or accountant can help ensure that you are applying the rules correctly to your particular business situation.

But if you plan on making an investment in marketing for your business next year, let's talk. The ability to deduct those marketing costs might make the investment in marketing even more appealing.

![lets_talk2.jpg](https://blog.gobonafide.com/hs-fs/hubfs/CTAs/lets_talk_2.jpg?width=795&name=lets_talk_2.jpg)

[![Colette Jensen](https://blog.gobonafide.com/hubfs/20210530_142237.jpg)](https://blog.gobonafide.com/author/colette-jensen)

### [Colette Jensen](https://blog.gobonafide.com/author/colette-jensen)

## about us

Bonafide is an online / digital marketing agency based in Houston, Texas that works with growth-minded businesses nationwide. We help companies find new customers on the internet using market research, inbound marketing, CRM and sales enablement, search engine optimization (SEO), content marketing, pay-per-click advertising (PPC), social media, PR, technology and more.

## Quick Links

## Questions?

713-568-2364

## Contact us

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5318 Weslayan St # 128  
Houston, TX 77005   
* Mailing address only. 

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