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IRS corporate gift rules STATE OF CALIFORNIA

Los Angeles, CA |
Filed under: Tax law

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

Posted

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

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Posted

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
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Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.

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Posted

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 until you have consulted with her and signed a fee or letter agreement confirming her representation of you. This email does not otherwise constitute legal advice or create an attorney client relationship. Ms. Johns and her employees are not tax lawyers or financial advisors and do not give tax or financial advice of any kind. If you wish such services, please consult with the appropriate professional in that field.

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