Video: Business Gifts

In this lesson, Nick Palazzolo, CPA, elaborates on the intricacies of accounting for business gifts in tax returns. He meticulously breaks down a scenario wherein company B distributes a range of gifts to different clients, clarifying how the IRS rule, which sets a max deduction of $25 per recipient per year, is applied in instances of multiple gifts to singular clients. Through step-by-step calculations, Nick demonstrates the deduction limits in practice, how excess amounts are non-deductible, and how to navigate various gift-giving situations to ensure proper adherence to tax regulations—all with an aim to arm you with the necessary acumen to tackle such questions effortlessly on the CPA exam.