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Holiday parties and gifts can help show your appreciation and provide tax breaks

Posted by Admin Posted on Dec 03 2019

The holiday season is in full swing. Your business may want to show its gratitude to employees and customers by giving them gifts or hosting parties. It’s a good idea to understand the tax rules involved. Are they tax deductible by your business and taxable to the recipients? Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees (such as a holiday turkey) aren’t included in their taxable income yet are deductible by you. Holiday parties are 100% deductible if they’re primarily for the benefit of non-highly-paid employees and their families. If customers attend, parties may be partially deductible. Contact us with questions.