fbpx

If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:

  • You deduct no more than $25 of the cost of business gifts you give directly or indirectly to each person during your tax year.
    • If you and your spouse both give gifts to the same person, both of you are treated as one taxpayer.
    • Incidental costs such as engraving, packing or shipping aren’t included in the $25 limit if they don’t add substantial value to the gift.
    • For purposes of the $25 per person limit, don’t consider gifts costing $4.00 or less that have your business name permanently engraved on the item and which you distribute on a regular basis.

  • Any item that could be considered either a gift or as entertainment is generally considered entertainment and cannot be deducted.
  • You need to have records that prove the business purpose of the gift as well as the details of the amount spent.

Riolene Ibok, CPA, MBA ACCOUNTING & TAX ADVISORY GROUP

555 North Point Center East, Suite 400 Atlanta, GA 30022 O: 678.697.2229 F: 678.264.5565

8610 Roswell Road, Suite 200A Atlanta, GA 30350 O: 770.558.6338 F: 678.264.5565 ATAGCPA.com

Leave a Reply

Your email address will not be published. Required fields are marked *