• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Are you treating customers to holiday gifts?

Get PDF file

by on
in Business Etiquette,Workplace Communication

Q. Our company intends to provide gift baskets to valued customers during the holidays. Are they deductible and tax-free? M.L.B., Sheboygan, Wis.

A. Yes, within limits. You can deduct up to $25 for business gifts given directly or indirectly to each person during the year. A gift to a company intended for the eventual personal use or benefit of a particular person or a limited class of people is treated as an indirect gift to that particular person or individuals within the class of people who received the gift.

Tip: Regardless of the amount, business gifts aren’t taxable to the recipients.

Leave a Comment