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Business Gifts Deduction

Business GiftThe tax law puts tight wraps on your ability to deduct year-end holiday business gifts to customers and clients.

GIVE TO COMPANIES, NOT INDIVIDUALS  

Your deduction for business gifts is limited to $25 per recipient. But that restriction applies to gifts to people, not companies. So you can give a company any size gift and write off the entire cost.

WRITE OFF INCIDENTALS  

Expenses related to gifts – wrapping, engraving, mailing – don’t count as part of the $25 limit. If you buy a customer a $25 brass business card holder and spend $14 to engrave, wrap and mail each one. You can deduct $39 as a business expense.

DEDUCT TICKETS THE RIGHT WAY  

Tickets to sports or theater events can be treated as either business gifts or entertainment expenses. Since these tickets often are quite expensive, treating them as entertainment costs can result in a larger deduction even after the 50% limit imposed on such expenses.


If you have any questions or require further info please call 718-531-1105 or send an email.


This web site and these articles are not tax or legal advice and are not intended as tax or legal advice.  They are intended to provide only general, non-specific legal information and are not intended to cover all the issues related to the topic discussed.  The specific facts that apply to your matter may make the outcome different than would be anticipated by you.  This web site and these articles are based on United States law.  You should consult with an accountant or lawyer familiar with the issues. This web site and the articles contained on this web site are not solicitations.

Contact Info:

Ronald Semaria
Semaria Consulting
1408 East 66th St
Brooklyn, NY 11234
Email: info@semaria.com

Phone Numbers:

Phone: 718-531-1105
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