B&J Bookkeeping knows your clients, employees, workers, contractors, and more have done lots to keep you in business. They deserve something special for their support. You want to get them something nice. Did you know these purchases are tax deductible? Below, we will share this excellent Bookkeepers Tip on Business Gifts.
1. Business Gifts by the Numbers
Ever notice that gift cards often come in $25 amounts? The most likely reason is because this is the maximum allowable deduction per gift, per person. You may spend more, but you may only deduct $25 for each gift. If you spend less, you must deduct that amount. For example, if you buy five $20 gift cards for your five workers, you may only deduct that $20 per each gift, or $100 for all five. You may only include the cost of the gift, not any extras such as:
- Gratuity.
- Engraving.
- Shipping or packing.
- Wrapping.
Be sure to keep records of these gifts including the receipt, name of recipient, purpose of gift, and other details. You can read more on Business Gifts on the official IRS site.
2. Business Gift Ideas
Gift cards are easy, convenient, and you know they will be enjoyed. However, they can be impersonal. You know your business partners and what they like. It doesn’t hurt to put a little thought into the gift, as your recipient may receive a ton of gift cards this season. However, if you do go that route, think of a store, restaurant, or shop they like or have mentioned and get the gift card there.
3.Don’t Forget the Christmas Cards
Did your business send out holiday cards this year? The costs are deductible including the cards, postage, and any graphic services you used to create them.
Bookkeepers Tip on Business Gifts in Houston
Finally, those who live in Houston and the surrounding areas should feel free to contact B&J Bookkeeping and Taxes. We can help your business deduct these gifts, cards, and all sort of eligible items to reduce your tax burden easily and effectively. We proudly serve businesses, individuals, and professionals of all types get the most out of their money.
