Are gift cards given to tenants deductible

Forum|Forum|1 year ago
March 23, 2025
1 reply
2 views

Hello

I own a rental property. Can the following expenses be added under Schedule E, and if so, which expense head should be used?

1. Gift cards given to Tenants during Christmas time

2. Gifts (+ Shipping expense ) given to employees of the Property Management company that I use to manage my rental, during Christmas time.

Thank you

Bsch4477

Level 15

Deduct as advertising.

san50Author

Level 4

Thank you. I forgot to mention, that the gift card amount was $50. I also hear that only $25 per family can be deducted for such expenses. If that's the case, should I just deduct $25?

I see definition of Advertising is solely listed as providing advertisement and expenses for that (see below). Is giving a gift to tenant considered a valid expense under Advertising bucket?

Thank you

Turbo Tax Help on Advertising shows below -

Advertising

Generally, you can deduct reasonable advertising expenses that are directly related to your rental activities.

Examples include:

Ads in phone books
Signs and banners (so long as they aren’t permanent fixtures that will remain for many years, as those will be deducted elsewhere, as assets)
Printing and postage for mailers
Fees charged by rental advertising websites

Advertising expenses paid to influence legislation are not deductible.

Vanessa A

Level 15

You are correct. The limit is $25. So, no, you will not be able to claim the full $50, you can only claim the $25. You can enter these as gifts or other miscellaneous expenses which will allow you to enter what they are along with the cost.

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