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Episode 114: Gifting As A Business Owner: What Is and Is Not Tax Deductible With CPA Amy Northard
Welcome back to another episode of The Legal Paige Podcast. Today I am joined by guest CPA Amy Northard. Amy is a certified public accountant or CPA who specializes in working with creative, small business owners to make taxes and bookkeeping less stressful!
Things we talk about:
- What is a tax deducible when gifting clients.
- Is the gifts you are gifting your team helping your taxes?
- Do marketing materials fall under gifts?
- Why it's so important to not just gift to reduce your taxes.
- And how to get your ducks in a row before the end of the year.
Here are a few quotes:
"The most basic thing to understand is that you can give $25 the value or less to your clients or your employees. And they don't need to pay tax on it. You can gift more than that per person, but from a deductible standpoint, up to that $25 per person can be shown on your taxes."
- Amy on gifting and taxes
"When it come to e-gifts, if you send someone a $100.00 Amazon gift card, the first $25 of that would be deductible, you would still expense the full $100.00. But you want to track who you're sending gifts to so that when your CPA is doing your return, they can basically count up how many people you gifted to and use the correct amount."
- Amy on gifting electronic gift cards
"I think the easiest way is probably just to keep a spreadsheet of all of the names of people that you've sent gifts to. At tax time, you can just give that list to your accountant, or if you're doing your own taxes, you can pull it up and just say, okay, I gave this person a $30 gift. So they get $25 towards this deduction and just do that for the total amount of people."
- Amy on record keeping for the end of the year