IRS corporate gift rules STATE OF CALIFORNIA

Asked 7 months ago - Los Angeles, CA

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I understand that IRS only allows upto $25 of WRITE OFF for corporate gifts. What I want to know is that is it in anyway against any CALIFORNIA law or Federal Law to give away gifts/gift cards of cash value of up to $100 to patients for marketing purposes?

Attorney answers (3)

  1. Licensed in CA

    Orange Tax Lawyer
    Contributor Level 9

    3

    Lawyers agree

    Answered November 12, 2012 12:39. Nope, your deduction for those is going to be limited to $25 each per Section 274(b)(1). California law conforms to this rule.

  2. Licensed in CA

    Pro

    Redlands Tax Lawyer
    Contributor Level 17

    2

    Lawyers agree

    Answered November 13, 2012 07:05. Depending on the nature and purpose, you may also want to consider these "gifts" as promotional in nature and part of the marketing activity of your business. Suspecting the entire portion would be deductible in that case.

    Holler with any questions.


    Evan A. Nielsen
    1255 W. Colton Ave., #506 | Redlands, CA 92374
    Main: 909.363.4658 | Fax: 480.304.3211
    Evan.Nielsen@NielsenLawGroup.net
    www.NielsenLawGroup.net

    Mention this Post for a free consultation.

    Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational... more
  3. Licensed in CA

    San Diego Family Law Attorney
    Contributor Level 19

    2

    Lawyers agree

    Answered November 16, 2012 23:25. Both counsel are correct in terms of the legal limit for gifts. You might want to consider counsel's suggestion regarding whether it's considered a marketing expense for taxes although I'd consult with your CPA or tax attorney as to the best course of action.

    Ms. Johns can be reached at (866) 402-4038. Ms. Johns is a lawyer although she is not your lawyer unless and... more

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