As your business gets ready for the holiday giving season, keep the following tax limits in mind. Your company can only deduct up to $25 per person per year for gifts to recipients such as clients and business partners. You can also generally deduct $25 per person per year for employee gifts. And, as long as gifts to employees are infrequent and of minimal value (de minimis), they aren’t taxable to workers. However, if you give cash or cash-equivalents (such as gift cards), those gifts are considered compensation and taxable to employees. Although the IRS doesn’t specify a dollar amount for a gift to qualify as a de minimis benefit, you should aim to spend $100 or less. Contact the Cg Team with questions.© 2024