When setting up an expense account for gifts( gifts to clients) what detail type do I use- meals and entertainment or advertising.

Gifts are limited to $25 per  person as a deductible expense for taxes. 

So the only way I see to track this, assuming your gift is more than $25, is two accounts

gift expense-deductible
gift expense- not deductible

and split the purchase - that will make reporting at tax time a little easier

however, if the gift could be considered as entertainment, then it is entertainment and is not deductible.

see this

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses...

So, which "detail type" should be used for Client Gifts when setting this up in the Chart of Accounts?

---

@Shelly wrote:

So, which "detail type" should be used for Client Gifts when setting this up in the Chart of Accounts?

---

other business expenses

when choosing one of the intuits detail types that they invented, the generic detail type  is always safe.  expense is expense in accounting

If more than $25 was spent, what should the rest of the expense be coded too?

Did you ever get a reply to this? I'd like to know as well. I have spent more than $25 on clients.

Thanks!
Diane