Armed Forces Reservist Business Gift Expense (Form 2106)

[AnonymousUser3]

Can I deduct a gift given at a white elephant for $20.00?

The maximum amount from TurboTax says that the maximum amount given to one person is $25.00.

What about flowers given for a change of command? 

Or a gift provided for a change of command ceremony?

What about food items bought for holiday event, party etc.?

[ThomasM125 · Accepted solution]

You can only deduct as a charitable contribution money or gifts given to qualifying charitable organizations, such as a church, school or charity like Goodwill. Also, you must reduce the value of a gift by any benefit you received in return. I'm not sure if the instances you mention would qualify under those parameters.

[AnonymousUser3]

Hi,

The form 2106 specifically asks if any gifts were given under $25.00.  Therefore, why would the form ask if any business gifts were provided?  Likewise, I assume if travel > 100 miles, uniforms, and education can be deducted for military reservists, then why wouldn't business gifts also be included? Last, the publication is vague and leaves room for ambiguity here. 

[DMarkM1 · Accepted solution]

Business gifts are not included in the deductions allowed for Armed Forces Reservist duty, nor are the change of command ceremony gifts/flowers.  Only the travel related expenses are deductions.  According to the Form 2106, line 10 instructions: 

"Line 10. If you are one of the individuals discussed below, special rules apply to deducting your employee business expenses. Armed Forces reservist (member of a reserve component). You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service. 

If you qualify, complete Form 2106 and include the part of the line 10 amount attributable to the expenses for travel more than 100 miles away from home in connection with your performance of services as a member of the reserves on Schedule 1 (Form 1040), line 12, and attach Form 2106 to your return. The amount of expenses you can deduct on Schedule 1 (Form 1040), line 12, is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses), plus any parking fees, ferry fees, and tolls."

[AnonymousUser3]

Hi, but education expenses are deductible.  Also, uniform expenses. Are you sure business expenses under $25.00 do not apply under the 2% rule?

https://ttlc.intuit.com/community/business-taxes/discussion/armed-forces-reservist-education-expense...