Founder and CEO of Auer Tax Group, author and Premier Tax Expert, David Auer, provides an overview and several examples of how both, giving and receiving gifts, can either help or hurt you at tax time, and when gifts must be reported on tax returns.

Tulsa, OK., February 1, 2016 –  David Auer, recognized Premier Tax Expert and Founder/CEO of Auer Tax Group posted a new article on the company website entitled “Gift Giving and Receiving Could Come Back to Bite You in the Tax.” The simple act of giving or receiving gifts can get complicated at tax time and Mr. Auer helps bring clarity to the issue.

Auer writes, “Gift giving is something many businesses do year round as a way to thank customers, suppliers, and employees, and to show appreciation for the multitude of different business relationships, Sometimes it’s difficult to understand how gifts need to be treated for tax purposes.” He continues adding, “As you prepare for the 2015 tax season, keep the following overview handy and remember to tell your tax preparer about any gifts given or received that need to be included on your return.”

Auer covers gifts to non-employees and employees. He covers cash and non-cash gifts. Regarding gifts to non-employees Auer states, “The general rule is you can deduct up to $25 of the total cost of business gifts you give to any person in any year. You may choose to spend more, but only the first $25 is deductible.”

However, Auer says, “There are exceptions. For example, the cost of gift-wrap or engraving is not included in the $25 limit.” When it comes to promotional items Auer writes, “low-cost (less than $4) pens or other promotional items engraved with your company name are fully deductible.”

When it comes to giving gifts to employees, Auer explains, “You can give your employees food or other noncash items of nominal value and deduct the cost.” The employee is not taxed since as Auer states, “These items are not considered income to your employees.” However, he goes on to clarify, “Cash and gift certificates count as bonuses. Your company can deduct the expense for these items. The value is taxable compensation for employees.”

The entire article can be read at http://www.premiertaxexpert.com/gift-giving-and-receiving-could-come-back-to-bite-you-in-the-tax/

About David Auer

With over 30 years of experience, David Auer is the Founder and CEO of Auer Tax Group, a national tax consulting firm, Blue Ocean Strategies, a business strategic planning group, and The Advanced Planning Group, a collaboration of multidisciplinary advisors focused on tax, estate, asset protection, and business succession strategies for successful business owners, professionals, and high net worth families. He is also a founding member of Financial Gravity Law, a division of Financial Gravity®.

David is a frequent speaker, is recognized as one of America’s Premier Experts®, is on the adjunct faculty of Asset Protection Corporation founded by internationally acclaimed asset protection attorney Robert Lambert, LLM in Taxation, Esq., and is the author or co-author of several books, including 57 Ways to Grow Your Business – Bright Ideas for Serious Entrepreneurs; “You Can Deduct THAT?”; Ignite Your Life with Brian Tracy; and Performance 360 Special Edition with Richard Branson.