TAXMAN Posted March 25, 2008 Report Posted March 25, 2008 Is a realtor who gives a gift of a Wal-Mart card to a client upon closing subject to the same rule as an employee with business expences? ie $25.00 cap? thanks. Brain Dead and I should know this answer. I may think that in these days anything to get a client to the closing table should be deductible. Quote
jainen Posted March 25, 2008 Report Posted March 25, 2008 >>anything to get a client to the closing table should be deductible<< Unfortunately, the law that allows a deduction for business gifts was not indexed for inflation. It remains at $25 per person per year. Every business person thinks their own situation should be an exception, but no. Once again we need to be mindful that when a deal only makes economic sense if you get a tax break, it is fundamentally not a good deal. Depending on how desperate the taxpayer is, there may be creative ways to stretch the limits. A married couple can get two $25 gifts. The listing and selling agents can each make gifts, and perhaps their brokers can too. Cash or equivalent (like a Walmart card) could be considered a rebate of commission instead of a gift. These strategies should be thought out ahead of time; they make weak arguments after-the-fact. Quote
RoyDaleOne Posted March 25, 2008 Report Posted March 25, 2008 Quid pro quo, if the giver except sometime in return, a referral, a good review, it is not a gift. Dunnegan v. Commissioner, T.C. Memo 2002-119 Quote
Janitor Bob Posted March 25, 2008 Report Posted March 25, 2008 Quid pro quo, if the giver except sometime in return, a referral, a good review, it is not a gift. Dunnegan v. Commissioner, T.C. Memo 2002-119 I give my favorite clients a frickin banana Quote
mdmcfarland Posted March 25, 2008 Report Posted March 25, 2008 Do you give them 2 frickin bananas if it is a married couple? And what if they have a litter of kids - do you give them the whole "bunch"? Quote
Janitor Bob Posted March 25, 2008 Report Posted March 25, 2008 Do you give them 2 frickin bananas if it is a married couple? And what if they have a litter of kids - do you give them the whole "bunch"? Obviously you are not aware of the frickin regulations that prohibit more than one frickin banana per household unless you have obtained a frickin babana license. Quote
RoyDaleOne Posted March 25, 2008 Report Posted March 25, 2008 Banana? What happen to the cookies? Quote
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