Giving Season and Business Gifts: Are They Deductible?

they need to raise that figure....what the heck can you buy for $25???  

Krystin,

Thank you for the clarification and I agree with Barbara Todaro 's comment.  Happy Holidays. A

Krystin Mitchell, CPA CFE  and Ron and Alexandra Seigel  I'd be embarrassed giving a $25 gift to a homeowner who just put $15 to $20k or more in our pockets.... I just eat the gift and forget the write off.... imagine giving a Starbucks gift card after closing on a high end or luxury home.... even a starter home is high $300's in our area....

Krystin and Barbara Todaro our client who sells luxury propeties often gives a 6 pack of Dom Perignon or 6 bottles of a Napa cult wine...A

Ron and Alexandra Seigel and Krystin Mitchell, CPA CFE I had a high end subdivision ( the last one I listed) with 52 homes that ranged from $700k to over $1mill....  every home buyer received a credit for $1,500 to California Closets while the home was under construction.... I deducted it from my commission....the builder paid the closet company with what I deducted....that was 15 years ago and they loved it.... there's more than one way to skin that cat.... and it's legal....

Krystin and Barbara Todaro California closets was the brainchild of Ron's Uncle David who helped one his students in his business class (his second career after he and his brothers sold their furniture company)  conceive the whole business.  Today, it is in the hands of Ron's cousins and no doubt their kids will take over.  They have done very well, the wife of Ron's cousin has a great marketing mind.  I love your idea.  A

Ron and Alexandra Seigel (Alexandra).... the custom home I built and sold 11 years ago had California Closets throughout including the garage for bikes and storage...  I had the best closet designs in every single closet and storage area in the home.... miss it..

Morning Krystin.

The gifts I give well exceed 25.00, but the clients remember them 

Interesting about the entertainment factor.  Too bad though.

Thank you very much for sharing this reminder.

Happy New Year!

I hope you will try the black-eyed peas and mushrooms recipe I posted today. It is one of the best black-eyed peas dishes I can recall. 

Thanks for your comment on my recent post.

Have an outstanding January.

This was  news to me, I thought it was OK as long as it stayed under $35.

"Gifts that could be considered entertainment are not deductible."

Your comment on my recent post is much appreciated.

Have a very special weekend.

I would like this to be increase to at least $50 now.  Not staying up with the increase in items.

I'm looking forward to reading your next blog post at ActiveRain.

As a lender, I must be extremely careful regarding the giving of gifts Krystin Mitchell, CPA CFE ... and while I agree with many here that some closings would seem to demand far more than a $25-valued thank you ... that is the ruling I must live by.  Thankfully, my wife (marketing guru) helps me immensely in this regard as she tries to personalize the choice of gift to each individual client.  I think that little bit of extra effort resonates ...

Gene