Loading…
2
My accountant said my 'client gifts' write-offs were a red flag
I used to buy $200 gift cards for big clients around the holidays and write them off as a business expense. My new CPA in Austin looked at my books and flat out said, 'The IRS sees that as a personal benefit, not a deductible cost.' I changed it to only writing off branded swag I give at meetings. Has anyone else had to rework their gift strategy after an audit scare?
4 comments
Log in to join the discussion
Log In4 Comments
stella227mo ago
Yeah, my old bookkeeper warned me about that too lol. She said the IRS treats gift cards like cash, so they're a huge no-go for write-offs. Swag is definitely the safer move.
6
derek_hill7mo ago
Totally get why your CPA freaked out. The IRS rule on gifts is stupidly specific. You can only deduct up to $25 per person per year for actual gifts, and gift cards almost never count. Swag is safer, but even then, you need to track it. I keep a box of cheap branded pens and notebooks for this exact reason, and I note who got what and when. It's a pain, but it beats getting a letter from the tax man.
5