In some situations related to the gift of tickets for sporting events or other events, the taxpayer can choose whether to claim the deduction as a gift or as entertainment. Finally, individuals who make donations as part of their overall estate and financial plan often enlist the services of lawyers and CPAs, EAs and other professionals. Once you've determined who you're buying gifts for, it's time to set a budget so you don't spend too much on gifts. The IRS will provide an account transcript for gift tax returns when Form 4506-T, Request for Transcript of Tax Return, is completed correctly and properly filed.
It does not apply if you give a gift to an entire company, unless the gift is intended for a particular person or group of people within the company. You can make things easier for your accountant and tax preparer by saving gift purchase receipts and writing any relevant details on them (such as what you bought, who you bought it for, and why). The rule DOES NOT apply to postage, packaging, shipping, or any other incidental costs of sending the gift. You can also give a gift that qualifies as an entertainment expense and you can deduct 50 percent of it from your taxes.
A gift to a customer's family member is treated as a gift to the customer, unless you have a legitimate non-commercial connection with the family member. After making your list, reviewing it twice, and setting a budget, the last hurdle to getting through this holiday season is what kind of gifts you should buy for your customers. If you're not sure if gift tax or inheritance tax applies to your situation, see Publication 559, Survivors, Executors, and Administrators. The agent attaches a note with the gift requesting future business and references, accompanied by three business cards.
I understand that you want to thank your customers, but that doesn't necessarily mean they deserve a gift. This also includes personalized engraving, gift wrapping, or any other addition to the gift that does not increase the value of the item. While employee gifts have their own limitations and can be treated as taxable compensation, an employer can generally deduct the full cost of gifts given to employees. It's also worth noting that most major religions have some kind of holiday or ceremony in December, so a souvenir gift for that particular one can be a thoughtful gesture.
