We just got the most fabulous gift box from a friend. Wow! How exciting. And no doubt, you’re gearing up to give holiday gifts to your friends and clients, too.
So, let’s look at the tax implications, for a minute.
Basically, forget about getting a deduction for your business gifts. Business deductions for gifts are limited to $25 per person, per YEAR! Not per holiday, or per event. (Sorry, I don’t make the rules.
buy xifaxan online healingtohappy.com/wp-content/languages/new/over/xifaxan.html no prescription
Neither does the IRS. Congress writes the laws and they haven’t changed this one in my lifetime.
) By now, you’ve probably already spent that on each of your business associates earlier in the year.
Of course, you do get to separately add in the cost of the shipping and wrapping and engraving. The rest of the cost? A non-deductible business expense. Can’t show it on your tax return. (It’s an adjustment on Schedule M-1 on the partnership or corporate returns.)
You could always get imprinted business gifts. There’s barely enough time to do that. But, even then, you’re looking at an item costing $4 or less, imprinted with your business name or logo. Hmmm…not much for a whole year’s worth of patronage.
So, whatever you decide to get them, it should be for one of three reasons:
1) You really care about the person and want to see the happiness the gift brings.
2) You want to thank them for being so good to you this past year.
3) Or you’re looking to impress them for business reasons, to get more money out of them next year.
buy grifulvin online healingtohappy.com/wp-content/languages/new/over/grifulvin.html no prescription
Whatever you do, get them whatever you want or is appropriate, and don’t worry about writing it off.
And remember, you can find answers to all kinds of questions about business gifts and other tax and business issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed version of TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the new TaxQuips Forum .