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LP111960
March 19, 2022
Question

Loyalty Card redemption

  • March 19, 2022
  • 1 reply
  • 0 views

I reward my customers with punches on a loyalty card.  When the card is full they can redeem for $25.00 off a purchase.  Is the $25 tax deductible as a expense?

    1 reply

    P
    PattiF
    March 19, 2022

    Yes, the $25 is tax-deductible as a business expense. No more than a $25 expense can be deducted for each person during the year. See this IRS faq.

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