Small Business Services

Gifts - business gift limitation

Generally, the deduction for business gifts is limited to $25 a year for each recipient, if the gift is made to an individual or partnership. There is no dollar limit on the deductibility of a business gift made to a corporation or business entity. Gifts to a corporation or other business entity intended for the eventual use or benefit of a owner, shareholder or employee is subject to the $25 limitation.

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