Are you a small business owner looking to give gifts to your clients? It's important to understand the rules for deducting the cost of these gifts on your taxes. In this video, we'll go over the general rules for deducting the cost of gifts on your taxes and what you need to know to ensure that you're able to properly claim the deduction.
First, any gifts that are given to a client or customer with the intention of promoting your business are deductible, as long as they are not extravagant or lavish. The IRS allows you to deduct up to $25 per person per year, so if you give a gift worth more than $25 to a single client, you can only deduct the first $25.
It's also important to keep good records of the gifts you give out, including the date and the recipient's name and address. This will make it easier for you to claim the deduction on your taxes and provide documentation if necessary.
In this video, we'll go over these rules in more detail and provide some tips for giving promotional gifts to your clients while staying within the IRS guidelines. Whether you're looking to give branded pens, mugs, or gift cards, we've got you covered. Tune in to learn more about deducting the cost of gifts on your taxes as a small business owner.
