Halloween is around the corner, and that means
trick-or-treating, pumpkin pie (pumpkin beer for some), parties, costumes, and
candy. But did you know you may be able to deduct some of the expenses for
Halloween?
While the traditional cost associated with Halloween,
costumes for yourself or your children, decorating your house, driving to the
local “safe-night out”, and buying candy for the neighbor kids are not
deductible, let’s look at the top seven things that are deductions:
7. Halloween
decorations for the office. Many businesses decorate their office for an upcoming holiday. The
decorations are intended to get business in the door and to increase revenue.
While decorating a personal home is not a deduction, decorating a business can
be.
6. Candy
for the trick-or-treaters that come to your business. When you participate in the treat giving associated with
Halloween at your business, you can deduct the cost of the treats you are
giving the little “ghouls” that come into your business establishment.
5. Lunch,
snacks, or treats for employees to celebrate the day. Many businesses don’t interact with the public directly, so employers
offer lunch, snacks, or treats to encourage employee morale. The costs of these
treats can be tax deductible.
4. Special
advertising for Halloween specials at a business. Advertising is a deductible expense for a
business any time of the year. Don’t forget to include the special advertising
costs associated with holidays.
3. Costumes
to wear during business hours. If businesses use Halloween costuming for themselves and their employees
to drive more business in the door, remember to deduct them.
2. Charitable
contribution deduction for money donated to UNICEF, or any other worthwhile organization during
Halloween. Whether it’s donated to kids who are trick-or-treating for the
charity or larger charity events, donations can help you at tax time.
And the number one tax deduction for Halloween:
1. Dental
bills to fill the
cavities of dependent ghosts and goblins. Medical expenses such as a visit to
the doctor for the candy induced belly ache or cavities can be deductible when
itemizing deductions.