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info60
Level 1

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

 
3 Comments
Rustler
Level 15

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...

Shelly
Level 2

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

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

Rustler
Level 15

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


@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

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