[DML] Re: A question about our vendors, with my DMA hat on.
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[DML] Re: A question about our vendors, with my DMA hat on.



Claude said:
"it is NOT done out of the goodness of the heart,but 
again as a way to generate more business and advertisement(ie: 
profits) and as TAX writeoffs."

As an accountant Claude's desscription of a writeoff is not exactly 
true, I know some of you are going to say tomAtoes/tomatOes but words 
do make a difference.

Since businesses are not living breathing things and it is people who 
actually run these businesses who make the decisions about how the 
organization conducts itself Claude is right "it is not done out of the 
goodness of their heart". 

However, it is not a writeoff, advertising is a cost of doing business 
just like employee salaries the electric bill and any other busness 
need. While advertising may be discretionary it is still simply another 
cost of doing business. The hope is this advertising will generate 
future revenue.

A tax write off is often an investment of funds in hopes of making a 
profit but if it doesn't pan out the loss of said funds can be offset 
against gains in other assets to reduce tax liablity. Or you can even 
have a writeoff on a personal level if you or your family suffers a 
casualty loss as an example your car is totaled and you were 
underinsured you could writeoff the loss on taxes and a portion of said 
loss could reduce your tax liablity.

Dan Haney
vin 3254







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