1 reply to this topic

[samo]

How best to handle question...Are these gifts taxable?

Over the last 30 years, I have been asked by Clients the above question.

The simple and best answer is that you are not an attorney and you are not qualified to answer the question. This question should be answered by an attorney familiar with your company and the local, state and federal tax laws that might pertain.

Another option would be to refer them to the person they normally go to for advice on various compensation issues.

:)

Edited by samo, 21 April 2009 - 12:06 PM.

[epicemb]

Sam - I do not really understand what you are asking, but IRS code is pretty clear - the $ limit is $25. For the giver they can deduct the cost on their taxes up to $25 a year. For the recipient they need to claim anything worth more than $25. There is no real need for an accountant or lawyer as it is pretty cut & dry.

Depending on who you are talking about a bigger question is the legality of gifts - if any government funds are involved in the business this can be a huge no-no - this can extend even down to coffee and bagels (more entertainment, but along the same lines) at a business presentation - if there are federal government folks in the crowd you will often see an honor box for them to put a $ or two in.