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    #1

    Corp

    1120 Corp client has given gifts of $396 to leased employees - bestbuy gift cards etc. Please note that these are not client's employees as they lease them from a company.

    I think the rule is $25 gift per emplyee per year.

    Should I deduct all $396?

    Thanks

    Jane
    Tags: None
    #2
    Generally a leased employee is considered an employee. I would deduct the full gift as the rule is outdated and I would let the IRS disallow it on audit. You got to let the IRS auditor have something to disallow so he/she can allow something else in dispute.

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      #3
      Originally posted by OldJack
      Generally a leased employee is considered an employee. I would deduct the full gift as the rule is outdated and I would let the IRS disallow it on audit. You got to let the IRS auditor have something to disallow so he/she can allow something else in dispute.
      Thank you.

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