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Movie tickets & gifts

Technical topics regarding tax preparation.
#1
AZ CPA  
Posts:
35
Joined:
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
Posts:
352
Joined:
21-May-2018 7:50am
Location:
Hilton Head Island, 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
Posts:
1043
Joined:
22-Apr-2014 1:34pm
Location:
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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