Are Corporate Gifts Tax-Deductable?
You already know that corporate gifting (also known as business gifting) is a great way to show your clients and/or employees how much you appreciate them. It’s also a great way to forge relationships with potential new clients. But are you really reinforcing your brand by giving out a boring corporate gift like a day planner with your company logo embossed on it?
We believe that fruit gifts from Hale Groves make the best corporate gifts. Here are just a few great reasons why:
- Corporate food gifts are practical. If you’re not sure what to get, citrus gifts are a wonderful choice. Fruit is universally loved and falls in with many dietary restrictions.
- A fruit gift box or basket can be shared. A box or basket containing a larger variety of Florida citrus fruit gifts and/or other gourmet goodies is perfect for your recipients to share with friends and family members.
- Assorted food gift baskets appeal to a wide variety of tastes. If you choose a gift basket or box that includes a variety of different fruits, you can be sure of appealing to a variety of different tastes.
That’s just three incentives for sending a corporate gift from Hale Groves to you clients! But we have one more…did you know your business gift is tax deductible?
How Tax-Deductible Holiday Business Gifts Work
It’s true – your Hale Groves corporate gifts may provide you with an opportunity for a new tax write-off.
While sending holiday gifts to clients is considered a tax-deductible expense, there is a limit on how much you can deduct. The IRS allows up to a $25 deduction for each customer or client you send a gift to during the tax year (i.e., you can spend as much as you like on a gift but can only claim $25 maximum).
On the other hand, there may be different tax rules that apply if you send corporate gifts to a group (like if you send a Hale Groves basket of fruits and snacks to a single company – the company-wide gift would be considered deductible in any amount, as long as it’s considered within reason by the IRS).
Do keep in mind that shipping and handling charges are not included in the maximum and are deductible over and above the $25 gift limit (this shouldn’t affect your Hale Groves order unless you opt for expedited shipping, as standing shipping and handling is included in the total cost of the item).
Another thing to keep in mind: be sure you properly categorize your corporate gift as a gift, not a marketing expense so ensure you’re maximizing your tax benefit (when in doubt, consult your tax advisor).
Giving Gifts to Your Employees
Giving each of your employees a Hale Groves gift basket as a holiday gift can go far towards showing them how much you appreciate their hard work and fostering good employee morale. These gifts are considered by the IRS to be de minimus fringe benefits, or a gift that is “so small as to make accounting for it unreasonable or impractical.” Such gifts are also tax deductible up to $100 (many businesses use an informal cutoff of around $75 per gift to be sure of falling within the limit). Again, when in doubt, consult your tax advisor.
Happy gifting!
Shop Delicious Treats from Hale Groves
Hale Groves of Vero Beach, Florida, offers the best citrus and fruit gifts money can buy. Order some for your friends, family or yourself.
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