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holiday gifts for staff

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  • #16










    It speaks very well of you that that you want to do something personal for your staff. The IRS has a remarkably outdated limit on business gifts of $25/person/year. Anything over that to your employees must be included in income. For that reason, and because team members really appreciate it, we typically give time off. We’ll make up a “gift certificate” for it and add a personal note of appreciation.
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    Could this not be treated as a personal gift and allow for the exclusion up to $14k?
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    As Gamma Knives alluded, the gift has to be at arm’s length. Unless you would give the staff money even if they weren’t staff, it is not a true gift, as it has a business purpose. And I forgot to mention on the $25 limit that any direct “gift” to employees is taxable. Gifts to staff who aren’t employees are subject to the $25 limit.

    Business meals and parties including all employees/staff are 100% deductible.
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    I'm an employed doc.  Each of us in the group chips in $300 which pays for a holiday party with catered food and a small gift for each employee.  So is this something I could deduct?  We currently just give a check to our office manager, so there isn't a receipt.  Only documentation would be the cancelled check.

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    • #17


      I’m an employed doc.  Each of us in the group chips in $300 which pays for a holiday party with catered food and a small gift for each employee.  So is this something I could deduct?  We currently just give a check to our office manager, so there isn’t a receipt.  Only documentation would be the cancelled check.
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      Yes, but as an employee, you're only going to be able to deduct employee business expenses > 2% of your AGI so, unless you have a lot of other expenses, I don't see it benefiting you. If you happen to be able to use the deduction, though, I'd ask the office manager to write out a receipt, nothing fancy.
      Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #18
        I'm not into gift cards which worked out well as our group just gave everyone in the office a cash bonus.  Also paid for a holiday party at an upscale restaurant.  Contributed towards hospital units' Christmas parties in cash and door prizes.

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