Tax Year Prior to 2020: Giving a client a gift

apoulos92 — Thu, 27 Apr 2023 22:13:52 GMT

Sometimes I give some of my clients canvas prints as gifts for choosing me as their photographer. Can I use that as a right off and how would I claim it?

You can deduct your actual out-of-pocket costs up to $25...

KarenL2 — Thu, 06 Jun 2019 10:07:29 GMT

You can deduct your actual out-of-pocket costs up to $25 per client as a gift. Gifts are only allowed up to that $25 amount.

However, if you already have the supplies for these canvas prints, then you will simply deduct the cost of the supplies as you would normally, or as a marketing/promo (advertising) expense.

You cannot deduct the retail value, only your actual costs.

How to get to that area : While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to Schedule C. Select that to get to the general area.

Business Income and Expenses
select Edit next to your business (if it is there)
scroll to Business Expenses
then, Other Common Business Expenses
select that, then on the next screen you will see categories such as Supplies or Advertising, or you can choose Other Miscellaneous Expenses

If selecting Other Miscellaneous Business Expenses, you will be able to type a description and the amount.

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful.

Also, this link may be helpful to you IRS Small Business Help Center .

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Tax Year Prior to 2020: Giving a client a gift

You can deduct your actual out-of-pocket costs up to $25...