As of recently I have found myself running a digital agency and I have a question about classifying ad spend as an expense and deducting my liability.
For example, A client send me 3k a month to cover advertising costs which includes the ad spend as well as our agency fee in one transaction. We spend 2k on ads and keep 1k as our management fee, as far as the IRS is concerned, can we claim the ad spend as an expense the 1k as our actual profit?
Thank you!
For example, A client send me 3k a month to cover advertising costs which includes the ad spend as well as our agency fee in one transaction. We spend 2k on ads and keep 1k as our management fee, as far as the IRS is concerned, can we claim the ad spend as an expense the 1k as our actual profit?
Thank you!
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