- Did you know that when you provide a gift to a customer, the maximum deductible amount is $25 per person?
- Do you and your bookkeeper know the most important points to consider when gifting?
- Any questions on how gifting works?
Watch full video here to get answers to your questions
Hey, guys. This is Shauna, the Tax Goddess. Today, I want to talk about the gifting limit. Did you know that when you provide a gift to a customer, the maximum deductible is $25 per person? Let’s say you’re a real estate agent. Normally, if you receive a huge commission on selling someone’s house, you’re going to give a gift of more than $25. One of the things that you may want to consider is giving a gift basket; a gift that can be segregated or split up between the people in the family.
If you have a family of four, including husband, wife, and two kids, you can give a gift of up to $100 because that is $25 per person. A not-so-smart gift choice would be to give a single bottle of wine worth $100 because you would only be allowed to deduct $25 of that $100 bottle of wine.
One of the most important things you and your bookkeeper can do in your business set of books is to make sure that any time you’re giving a gift, you also put a note of how many people you are giving that gift to and whether it’s a gift basket or a single bottle of wine. Gift cards in the $25 limits are also a very popular choice.
If you have any questions on how gifting works or on any information you need to understand about deduction on gifts to your employees, clients, and/or vendors, please reach out to us on LinkedIn, Twitter, or Facebook. We’d be more than happy to help you. Hope you’re having a wonderful day.