I believe that company gifts are tax deductible, but if I give a gift to a customer and declare the tax deduction, do I also have to 1099 the customer so that he has to declare the gift as income?
2007-12-07 05:01:17 · 4 answers · asked by me 2 in Business & Finance ➔ Taxes ➔ United Kingdom
You also have an issue re: being able to deduct it.
Here is what the IRS says:
Gifts
Taxpayers may deduct some or all of the cost of gifts given in the course of their trade or business. In general, the deduction is limited to $25 for gifts given directly or indirectly to any one person during the tax year. More discussion of the rules and limitations can be found in Publication 463.
You can find Publication 463 on the IRS website:
www.irs.gov
Good luck.
2007-12-07 05:09:06 · answer #1 · answered by jwishz 7 · 0⤊ 1⤋
Since you talk about 1099's but on the UK board, where are you REALLY?
If you're in the US, no you wouldn't send them a 1099.
2007-12-07 18:37:17 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
I believe gifts below a certain level of value do not have to be reported as income to the recipient, but I don't know what that cutoff point is.
2007-12-07 05:10:02 · answer #3 · answered by curtisports2 7 · 0⤊ 1⤋
Why are you asking a US tax question on the UK board?
2007-12-07 06:11:37 · answer #4 · answered by Anonymous · 1⤊ 0⤋