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Business gifts?

 
 
Nan Eklund
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      12-04-2003, 06:30 AM
We just sent flowers for the funeral of a long time client.
For some reason it started me wondering how to classify the
expense (about $50). Not exactly a gift but what? Could
just ignore it but it's an off day.

Nan, EA in LA

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Helen P. OPlanick EA
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      12-07-2003, 10:22 PM
> We just sent flowers for the funeral of a long time client.
> For some reason it started me wondering how to classify the
> expense (about $50). Not exactly a gift but what? Could
> just ignore it but it's an off day.


In our books, we call it the sunshine fund and on our
return, it is client relations or misc.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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Harlan Lunsford
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      12-07-2003, 11:01 PM
Nan Eklund wrote:

> We just sent flowers for the funeral of a long time client.
> For some reason it started me wondering how to classify the
> expense (about $50). Not exactly a gift but what? Could
> just ignore it but it's an off day.


A tax deduction is never ignored! lol
In my chart of accounts I use "gifts". That's better than
"miscellenous", or even "supplies'. Besides, at year's end
you are alerted to the category and go back and count the
number of gifts and multiply by 25$ each for the tax
deduction.

Cheer$,
Harlan

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Arthur Kamlet
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      12-07-2003, 11:01 PM
Nan Eklund <(E-Mail Removed)> wrote:

> We just sent flowers for the funeral of a long time client.
> For some reason it started me wondering how to classify the
> expense (about $50). Not exactly a gift but what? Could
> just ignore it but it's an off day.


Advertising? You are keeping your company name in view for
hoped-for continuation of your business.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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Benjamin Yazersky CPA
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      12-07-2003, 11:21 PM
"Nan Eklund" <(E-Mail Removed)> wrote:

> We just sent flowers for the funeral of a long time client.
> For some reason it started me wondering how to classify the
> expense (about $50). Not exactly a gift but what? Could
> just ignore it but it's an off day.


A couple of quick suggestions

public relations
marketing expense to get the estate as a client

--
<<< Benjamin Yazersky CPA [NJ & NY] >>>

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Joel Berry, CPA
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      12-07-2003, 11:40 PM
"Nan Eklund" <(E-Mail Removed)> wrote:

> We just sent flowers for the funeral of a long time client.
> For some reason it started me wondering how to classify the
> expense (about $50). Not exactly a gift but what? Could
> just ignore it but it's an off day.


I always categorize something like that as advertising or
business promotion. I do it for both clients and myself.

Joel Berry, CPA
Sugar Land, Texas

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Mike Lewis
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      12-08-2003, 12:38 AM
"Nan Eklund" <(E-Mail Removed)> wrote:

> We just sent flowers for the funeral of a long time client.
> For some reason it started me wondering how to classify the
> expense (about $50). Not exactly a gift but what? Could
> just ignore it but it's an off day.


Gifts of this type are limited to $25 to one recipient each
year and the balance is non deductible.

Mike Lewis, CPA

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Harlan Lunsford
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      12-09-2003, 09:27 AM
Mike Lewis wrote:
> "Nan Eklund" <(E-Mail Removed)> wrote:


>> We just sent flowers for the funeral of a long time client.
>> For some reason it started me wondering how to classify the
>> expense (about $50). Not exactly a gift but what? Could
>> just ignore it but it's an off day.


> Gifts of this type are limited to $25 to one recipient each
> year and the balance is non deductible.


finally someone agrees with me about it being a gift.
Ordinary and necessary it may be , but adverising?
promotional? Do you think a funeral is a proper place for
such?

Maybe, but I don't.

25$ Cheers,
Harlan Lunsford, EA n LA

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D. Stussy
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      12-09-2003, 10:05 AM
Harlan Lunsford wrote:
> Nan Eklund wrote:


>> We just sent flowers for the funeral of a long time client.
>> For some reason it started me wondering how to classify the
>> expense (about $50). Not exactly a gift but what? Could
>> just ignore it but it's an off day.


> A tax deduction is never ignored! lol
> In my chart of accounts I use "gifts". That's better than
> "miscellenous", or even "supplies'. Besides, at year's end
> you are alerted to the category and go back and count the
> number of gifts and multiply by 25$ each for the tax
> deduction.


Multiply the number of gifts, not RECIPIENTS, by $25
(assuming $25 or more were spent at each transaction)?
Hmmmm.

Are we oversimplfying here, or trying to see what we can get
away with? ;-)

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Seth Breidbart
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      12-12-2003, 05:06 AM
Harlan Lunsford <(E-Mail Removed)> wrote:

> finally someone agrees with me about it being a gift.


To whom? The dead person?

> Ordinary and necessary it may be , but adverising?
> promotional? Do you think a funeral is a proper place for
> such?


I'm not aware of any law or regulation specifying that good
taste is required in advertising or other business
promotion.

Seth

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