Question

Business gift deductions

Forum|Forum|2 years ago
February 17, 2024
1 reply
0 views

Do you enter the entire gift amount or just $25 (the max deduction for that gift)? For example, if a gift costs $72, do you enter $72 or do you enter $25? Also, if the gift is for a couple, is the deduction doubled (i.e., $50)? Thanks in advance!

TurboTax Home & Biz Windows

A

AnnetteB6

You can deduct no more than $25 per gift per person given during the year. So, in your case, you could deduct $25 if a single gift was given to the couple or $50 if a gift was given to each person.

For more information, take a look at the following from the IRS:

Are business gifts deductible?

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G

grizz2Author

Does TurboTax do the calculating for you; that is, will it take the $72 and calculate the deduction or does the user enter $25?

D

DianeW777

No, you should calculate the allowed gift amount and then enter the correct figure in TurboTax. It's a detailed calculation when several people or businesses could be involved with receiving gifts. These expenses would be listed under 'Other Miscellaneous Expenses.

@grizz2

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