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Gifts to Clients or Customers

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A deduction is not available for business gifts made in excess of $25 to a person during the tax year.

If a taxpayer gives a gift to a member of a customer’s family, the gift is generally considered an indirect gift to the customer. This rule does not apply if taxpayer has a bona fide, independent business connection with that family member and the gift is not intended for the customer’s eventual use.

If the taxpayer and the taxpayer’s spouse both give gifts, the IRS treats them as one taxpayer. It does not matter whether they have separate businesses, are separately employed, or whether each of them has an independent connection with the recipient.

If a partnership gives gifts, the IRS treats the partnership and the partners as one taxpayer.

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  1. WilliamWab  June 4, 2016

    Muchos Gracias for your forum.Much thanks again. Want more. Guiliani

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