Gift cards to student

[ILLMAS]

A school wants to give $25 gifts card to its student, there are about about 100 students, $25 to the student isn't much, but to the school, they rather not give out the $25 if it requires a gift tax return which I don't think is needed, or if there is threshold amount on gifts the IRS might have. Does somebody know where I can get information on this, I checked the IRS website but what I found is more like giving someone a large amount of money or a house.

Thanks

FYI school is not reconsidered a NFP, files a 1120S

[jainen]

>>they rather not give out the $25 if it requires a gift tax return<<

Assuming there is a business purpose to the gifts (which seems to me almost but not quite self-evident), they can deduct up to $25 per recipient per year.

[mcb39]

I was going to give that same answer. Actually, from what I read, if it is a "business purpose", it could be up to $75 per person without documentation.

[ILLMAS]

Great can you point me to where you read that, that is what I need.

Thank you

MAS

[TAXBILLY]

http://www.irs.gov/pub/irs-pdf/p463.pdf

taxbilly