State Tax Tips

"Hi, Tom Choisnet, enrolled agent. I put together this little section here on business gifts. This is an area that gets really abused and so it should really be brought to your attention because the statutory amount for business gift is twenty-five dollars per year per done. So your boss isn't being cheap with that little gift that they gave because that is the statutory rule. I might mention that I did a little research on it and came up that ad specialties, if they are less than four dollars each, the pen and the little calendars and the light, they can exceed twenty-five dollars if they are given frequently. Also, employee achievement awards, so the gold watch does become deductible. I've got a little separate section set up for employment achievement awards, so I'll be talking about that in another section, but that twenty-five dollar per year, per done rule is rarely enforced, but it is on the books so be cautious with it. Thank you!"