During the 2015 holiday season, Bob, a barber, gave business gifts to 34 customers. The values of...
Question:
During the 2015 holiday season, Bob, a barber, gave business gifts to 34 customers.
The values of the gifts, which were not of a promotional nature, were as follows:
10 at $10 each
8 at $25 each
8 at $50 each
8 at $100 each.
For 2015, what is the amount of Bob's business gift deduction?
Business Gift Deduction:
An employer can gift its employees as an incentive to work better or as an appreciation for the work already done. Such business gifts are taxable as per IRS and the maximum deduction that the company can take per gift per person is $25. When the gifts are made for the purpose of promotion and advertising, then they are not subject to this $25 deduction and are more beneficial.
Answer and Explanation: 1
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The amount of Bob's business gift deduction is $700.
Explanation:
IRS limits a business gift deduction of $25 per person to which gifts are made for...
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Estate planning is the process of making a plan for asset distribution after death. Explore the taxes, trusts, and gifts involved in estate planning and learn about assets, wills, and beneficiaries.
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