Business Gifts

published February, 2013

I’m seeing more clients who are giving business gifts this year. There is a limit of $25 per person per year. Really. This is Regulation Section 1.274-3. Seems a bit low, eh? Well, it is. You can still give your tax preparer an $80 bottle of wine, but you’ll only be able to deduct $25 on your business tax return.

Incidental costs don’t count—incidental, like labeling the bottle with your business name, mailing or gift wrapping.

Certain gifts to employees may be deductible to a greater extent, there are different rules for that. If you’re not sure, feel free to email and ask