IRS corporate gift rules STATE OF CALIFORNIA

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?

Los Angeles, CA -

Attorney Answers (3)

Robert Kenneth Morrow

Robert Kenneth Morrow

Tax Lawyer - Rolling Hills Estates, CA
Answered

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

Evan A Nielsen

Evan A Nielsen

Tax Lawyer - Redlands, CA
Answered

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... more
Hillary Johns

Hillary Johns

Family Law Attorney - San Diego, CA
Answered

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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