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File 2011 Taxes Free

File 2011 taxes free Index A Assistance (see Tax help) C Capital construction fund, Capital Construction Fund Comments, Comments and suggestions. File 2011 taxes free F Free tax services, How To Get Tax Help H Help (see Tax help) M More information (see Tax help) P Publications (see Tax help) S Suggestions, Comments and suggestions. File 2011 taxes free T Tax help, How To Get Tax Help Taxpayer Advocate, Contacting your Taxpayer Advocate. File 2011 taxes free TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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File 2011 taxes free 3. File 2011 taxes free   Gifts Table of Contents If you give gifts in the course of your trade or business, you can deduct all or part of the cost. File 2011 taxes free This chapter explains the limits and rules for deducting the costs of gifts. File 2011 taxes free $25 limit. File 2011 taxes free   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. File 2011 taxes free A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. File 2011 taxes free   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. File 2011 taxes free This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use. File 2011 taxes free   If you and your spouse both give gifts, both of you are treated as one taxpayer. File 2011 taxes free It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. File 2011 taxes free If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. File 2011 taxes free Example. File 2011 taxes free Bob Jones sells products to Local Company. File 2011 taxes free He and his wife, Jan, gave Local Company three gourmet gift baskets to thank them for their business. File 2011 taxes free They paid $80 for each gift basket, or $240 total. File 2011 taxes free Three of Local Company's executives took the gift baskets home for their families' use. File 2011 taxes free Bob and Jan have no independent business relationship with any of the executives' other family members. File 2011 taxes free They can deduct a total of $75 ($25 limit × 3) for the gift baskets. File 2011 taxes free Incidental costs. File 2011 taxes free   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. File 2011 taxes free   A cost is incidental only if it does not add substantial value to the gift. File 2011 taxes free For example, the cost of gift wrapping is an incidental cost. File 2011 taxes free However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. File 2011 taxes free Exceptions. File 2011 taxes free   The following items are not considered gifts for purposes of the $25 limit. File 2011 taxes free An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. File 2011 taxes free Examples include pens, desk sets, and plastic bags and cases. File 2011 taxes free Signs, display racks, or other promotional material to be used on the business premises of the recipient. File 2011 taxes free    Figure B. File 2011 taxes free When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. File 2011 taxes free (Do not use this chart if your home is your principal place of business. File 2011 taxes free See Office in the home . File 2011 taxes free ) Please click here for the text description of the image. File 2011 taxes free Figure B. File 2011 taxes free When Are Local Transportation Expenses Deductible?TAs for Figure B are: Reg 1. File 2011 taxes free 162-1(a); RR 55–109; RR 94–47 Gift or entertainment. File 2011 taxes free   Any item that might be considered either a gift or entertainment generally will be considered entertainment. File 2011 taxes free However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. File 2011 taxes free    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. File 2011 taxes free You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. File 2011 taxes free   You can change your treatment of the tickets at a later date by filing an amended return. File 2011 taxes free Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. File 2011 taxes free    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. File 2011 taxes free You cannot choose, in this case, to treat the cost of the tickets as a gift expense. File 2011 taxes free Prev  Up  Next   Home   More Online Publications