Movie tickets & gifts

Technical topics regarding tax preparation.
#1
AZ CPA  
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40
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6-Mar-2016 11:46am
Location:
Phoenix, AZ
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?
 

#2
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2887
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21-May-2018 7:50am
Location:
Northern MI and Coastal SC
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.
 

#3
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22-Apr-2014 1:34pm
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North Carolina
Different people have different opinions on this. Here's one thread:
viewtopic.php?f=8&t=11535&p=105932&hilit=realtor+gifts#p105932
 


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