Need help..nobody knows if it is a write-off...

[legaltender]

Hi, I am in California a own a advertising business that publishes a paper.

I have ask the IRS and a couple of tax people about this question and seem to get different answers. Please help.

1. If I put a church ad in my paper is that considered a write-off?
(example: I give church a slot that costs $200, is that a $200 write-off?)
2. If I advertise in my own paper is that also considered a write-off?
(example: same as above, I put a ad in my paper saying "advertise with me" is that also a write-off, if I put it in someone elses paper I know it would be)

I have been told yes and no to both. And examples that try to prove both ways.

Anyone know the correct answers and where it is published?

Thanks for the responses in advance.

[Snipes5]

If you give a church free advertising, it is a charitable donation, so that is the section it would go in on either your schedule C or your Partnership tax return.

If you are a sole proprietor, and you use some of your own publication for your own advertising, you may NOT write off what it would have charged someone else if someone else placed the ad. You may write off normal expenses/cost of that particular ad, but not what you would have charged someone else for it.

You may NEVER write off the cost of your own labor.

I don't have time to look up the references for you, however.

Snipes

[legaltender]

Thanks for responding Snipes, I do have a lot of opinions on it both ways so not giving where it is published gave me another one. lol

Also my tax person did call the tax preparers hotline and they said it was a write off both ways, personal if used for me and charity if used for church.

They said since it is $200 for that space and it is considered "inventory", I can treat it as any other product.

Of course like I said I get both stories depending on whom I talk to. And no real publication of proof either way.

Some have said PUB 535,529, and 526, but none of these show my situation.

I tend to think I can NOT write it off either way. But...

1. The church gains "value" and it is NOT labor... it is a product. (of course I only lose some ink more then anything)
2. It is advertising for myself. The same would be gained if I spent $200 with another company. But again I am not actually "losing" anything except a little ink which is written off anyway.

I should charge the IRS $100 per hour for my labor trying to decipher their code, that even they don't understand. lol

Any other ideas would be greatly appreciated (especially referance to proof)!