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Marketing Focus: Are Business Gifts Tax Deductible?

18th November 2022 in Charity & non-profit

As a company owner, you understand the value of growing and maintaining connections with essential customers, suppliers, and industry contacts. Giving business presents is a tried-and-true method of improving company ties. Yet, taxes can be a lot to digest. We have created this guide to clarify a few things for you and help you make the most of your customized gift-giving. In our post, we’re discussing Our business gift tax deductibility guide to help you make the most of your gift-giving. In our post, we’re discussing the below elements:

• What qualifies as a business gift?

• What business gifts are tax deductible?

• Gift ideas for tax-deductible gifts to give to employees and clients

What Qualifies as a Business Gift?

Whether you have a small business or you’re in charge of the company purchasing for your company, the Internal Revenue Service (IRS) defines a gift as something tangible given with no expectation of return. The IRS also excludes any intangible personal benefits from business gifts. For example, if you give an employee a season pass to an amusement park, this is considered a personal benefit because the employee may not enjoy it if their friends can’t come with them.

Which Business Gifts are Tax Deductible?

To start with, there’s a distinction between tax-deductible and tax-exempt. The required gift tax does not apply to various donations, such as those sent to your spouse, political groups, for another person’s education or medical expenses, or any other contributions that do not exceed the yearly exemption value of $15,000 per recipient. A gift tax is an extra levy on top of the tax you pay on income, property, and investments. Since a gift tax could potentially be assessed, it’s crucial to know how to itemize correctly if you are going to claim a charitable deduction. Charitable donations can be powerful. They allow you to contribute to the world, regardless of how much money your budget will allow. It may seem strange to think about business expenses being tax deductible, but it is possible if you meet certain criteria.

Here are a few examples of presents that might be considered business gifts:

Promotional materials like custom pens, custom mugspersonalized t-shirts, custom lanyards, customized key rings, and so on. All these items are tax-deductible if they have your business name printed on them and cost less than $4 per piece to produce.

Tax Deductible Gift Ideas for Employees and Clients

When it comes to incidental costs, gift-giving costs of $4 or less don’t count against the $25 maximum deduction limit and are treated as if they’re business cards if they fulfill both below criteria. The above examples of customized gifts make great office supplies, can be given in bulk, and are under four bucks. Also, these gift-limit-friendly items will rock your company name and logo.

The below items make great office supplies, can be given in bulk, and are under four bucks.

  1. Custom Pouch with Antimicrobial Additive:

Introducing the Anti-Bacterial Pouch. This bag is treated with a blend of antimicrobial inhibitors that have been tested to prevent the growth of surface bacteria. No more worries about where you set your bag or what you toss into it! Disclaimer: This product does not kill viruses.

  1. Customized Prestige Metal Stylus Pen:

Connect your brand with a wide and growing demographic of everyday tech users with the promotional look of this Prestige Metal Stylus Pen. This custom-printed metal stylus pen features a metallic finish barrel, a removable cap, and black ink along with a custom imprint of your organization's name, logo, and advertising message. From corporate tradeshows to non-profit fundraising, this tech tool is here for you and your brand.

  1. Custom Branded Curve Two-Tone Leather Portfolios:

Treat your clients to a fine leather behind-the-scenes look with this sophisticated, upscale Portfolio. This promo is made with a PU leather exterior and a PVC interior for an overall professional feel. It's 12.5" x 9.5" in size, making it perfect for holding paperwork or presentations, including your contact details on the lining. Order yours today!

  1. Custom Branded Unlimited Badge Holder

Our customized Badge Holder with slide clip extends up to 35 for quick and convenient badge-swiping. Enhance corporate security by including employee names and faces. Unlimited color options are available for this Good Value product. Great for an unlimited number of industries including healthcare and construction. Order yours today and open the door to success!

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