Giveaway Items – why real estate agents should keep them at $4 or less per item.
Giveaway items that you use to publicize your business (such as pens, coffee cups, T-shirts, refrigerator magnets, calendars, tote bags, and key chains) are deductible. However, you are not allowed to deduct more than $25 in business gifts to any one person each year.
The following items aren’t considered gifts for purposes of the $25 limit.
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An item that costs $4 or less and:
a. Has your name clearly and permanently imprinted on the gift, and
b. Is one of a number of identical items you widely distribute.
Examples include pens, desk sets, and plastic bags and cases.
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Signs, display racks, or other promotional material to be used on the business premises of the recipient.
EXAMPLE: A Real Estate Agent orders 1,000 ballpoint pens with his/her name and company logo printed on them and distributes them. Each pen costs $1. The pens do not count toward the $25 gift limit. The Agent may deduct the entire $1,000 expense for the pens.
For IRS details visit click here
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Note: This is general information to help you gain an understanding of U.S. tax laws. I am not a tax attorney or tax preparer. Please consult a qualified expert when you are preparing your tax returns or making tax-related decisions.
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