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Yes, within limits.
From the IRS:
If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:
Yes, within limits.
From the IRS:
If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:
If you give gifts in the course of your trade or business, you can deduct all or part of the cost. You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year.
SEE IRS PUBLICATION 463 THE GIFT SECTION FOR MORE INFORMATION
Business gifts are deductible up to $25 (see specifics in the tax code), and this $25 is in addition to shipping/tax. But I will tell you based on some Schedule C audits, the IRS thinks it is just $25.... eg. You send flowers for $50....$25 is for the flowers and $25 is for delivery/tax. The whole $50 should be deductible as a business expense, but the IRS adjusted it to $25, which actually isn't correct.
Business gifts are deductible up to $25 (see specifics in the tax code), and this $25 is in addition to shipping/tax. But I will tell you based on some Schedule C audits we are aware of, the IRS thinks it is just $25.... eg. You send flowers for $50....$25 is for the flowers and $25 is for delivery/tax. The whole $50 should be deductible as a business expense, but the IRS adjusted it to $25, which actually isn't correct.
To handle reporting the extra costs over $25 for business gifts for delivery and tax, report that extra amount under "Other business expenses as postage/delivery" and the tax a separate line as well.
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