How should I categorize a "client gift" in self employed

@juliesanchezsells4you  If you're giving them a gift, could be a number of things depending on the nature of the gift, the circumstances of the giving, and your intent.

For instance, under some circumstances, it could be considered a form of advertising, building good-will, that kind of thing.

As long as you establish a clear category for it, whether expense or other expense, it's not too important; all that really matters is that your income tax preparer knows what they're looking at with each category. If there's no particular category, an Other Expense called Gift Expense would serve well enough; not tax-deductible, but explains why that money flowed out.

If you're receiving a gift, it's just a gift. If it's money and you choose to put it into your business account afterwards, I suppose posting it to Owner's Equity as an increase would be as good as anything.

On the other hand, if you're receiving a "gift", you may want to work harder on hiding your paper trail.