Gifts

		*Gifts*
*In Actor Speak* When you give someone a gift, say your agent or a casting director, these are the facts you must be able to prove if you are ever audited. And there is a $25 limit on each gift to each person each year. If you are hired three times by the same casting director and you send them $30 worth of flowers 3 times, you can only use $25 of the total $90 you spent in that year.		In the Words of the IRS: Generally, taxpayers in the entertainment industry may be entitled to deduct expenses for business meals, entertainment, and gifts. Once the expense has been shown to be ordinary and necessary, in the taxpayer's business, the specific record keeping requirements must be met. Gifts Taxpayers must show that the gift was ordinary and necessary to their profession. Taxpayers must further show the following elements: Cost of the gift Date of the gift Description of the gift Business purpose or reason for the gift, or nature of business benefit expected to be derived as a result of the gift. Occupation or other information relating to the recipient of the gift, including name, title, or other description sufficient to establish a business relationship to the taxpayer. In addition to the elements to be proved, the law limits the deduction to $25 per person per year. This limit does not apply to any item for general distribution which costs less than $4 and has the giver's name imprinted on it. *Back to Topics*

Gifts

In Actor Speak

When you give someone a gift, say your agent or a casting director, these are the facts you must be able to prove if you are ever audited.

And there is a $25 limit on each gift to each person each year. If you are hired three times by the same casting director and you send them $30 worth of flowers 3 times, you can only use $25 of the total $90 you spent in that year.

In the Words of the IRS:

Generally, taxpayers in the entertainment industry may be entitled to deduct expenses for business meals, entertainment, and gifts. Once the expense has been shown to be ordinary and necessary, in the taxpayer's business, the specific record keeping requirements must be met.

Gifts

Taxpayers must show that the gift was ordinary and necessary to their profession. Taxpayers must further show the following elements:

Cost of the gift

Date of the gift

Description of the gift

Business purpose or reason for the gift, or nature of business benefit expected to be derived as a result of the gift.

Occupation or other information relating to the recipient of the gift, including name, title, or other description sufficient to establish a business relationship to the taxpayer. In addition to the elements to be proved, the law limits the deduction to $25 per person per year. This limit does not apply to any item for general distribution which costs less than $4 and has the giver's name imprinted on it.

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