Are promotional giveaways tax writable?
Posted by admin on Dec 1, 2008 in United States |
LiL Bush asked:
I want to give away some of my products in a drawing but can it be counted as a tax write-off?
Silicone Bracelets & Rubber Wristbands
I want to give away some of my products in a drawing but can it be counted as a tax write-off?
Silicone Bracelets & Rubber Wristbands
They might be a tax deduction for those people who give them away, but for those receiving them, they are not. In fact, the IRS was starting to crack down on celebrities over the past few years because they were receiving swag bags filled with tens of thousands of dollars worth of designer merchandise without declaring it on their income taxes.
Those can be written off as advertising as long as the amounts are reasonable. You use your cost, not the retail value by the way.
There are limits to how much for each person for the giveaways. look it up