TaxProTalk.com

Hope everyone is having a good tax season.

1. I have a realtor client that wants to buy movie and baseball tickets to his old clients. Is this considered business entertainment, which will not be tax deductible? Alternatively, can we classify it as business promotion or gift expense?

2. I also have another client that spent over $10,000 on gift cards and each one is over $25. Can this be considered business promotion expense, or they have to be gift expense and subject to $25 limitation per person?

I'd classify as gifts and limit each to $25, including movie/baseball tickets. They're gifts if the person is not participating with clients, entertainment if they are...at least, that is how I view it for simplicity. I fail to see how any would be advertising/promotion based on your post.

Different people have different opinions on this. Here's one thread:
viewtopic.php?f=8&t=11535&p=105932&hilit=realtor+gifts#p105932