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Is it Better to Give a Gift or Entertain???
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Most expenses are deductible as long as they are
ordinary and necessary for your business. You can deduct up to 50% of
entertainment costs, or gift costs up to $25 each.
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Entertainment: |
Gifts: |
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Deduct up to 50% |
Deduct up to $25 |
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Generally, an item that
is considered a gift is also considered to
be an entertainment expense.
If you give an item that is intended to be used at a later date
(like tickets to a performance or event),
it is usually considered a gift.
Sometimes you will have
the option of deducting those costs as a
gift or entertainment expense, depending on
the circumstances.
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FOR EXAMPLE
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If You Go With Them
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If You DON'T Go With Them
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Treat the cost as an entertainment
expense, do not deduct as a gift expense.
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Treat the cost as a gift or entertainment
expense, whichever is more advantageous.
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.... man, I don't even know how to finish that sentence!
- Brian Lucier