Gifts

		*Gifts*
*In Actor Speak* The most important thing to remember is the limitation on gifts $25 per person, per year. That doesn't limit you to one person, it means each person can only receive a maximum gift worth $25. Admittedly this is extremely limiting as most worthwhile gifts, even a decent floral arrangement for a casting director is exceeds that amount, but that is the limitation established by Congress and enforced by the IRS. You are certainly allowed to spend more, you just can't legally deduct any more for one person. 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. However, if you were to address the gift to the entire casting OFFICE and there were numerous people in the office, then you would be entitled to write off $25 for EACH person in the office. The same would be true for your agent who might be at a large AGENCY with numerous fellow agents and assistants in the office. So keep this in mind whenever you send a gift and when you decide on the kind of gift you are sending. It would be hard to argue that a gift certificate to a restaurant was for the entire office, whereas a gift certificate for a delicatessen with a delivery service might be more usable in this regard. Obviously though, saying "Thank You" properly is ultimately more important than the write off. *Back to Topics*		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

The most important thing to remember is the limitation on gifts $25 per person, per year. That doesn't limit you to one person, it means each person can only receive a maximum gift worth $25.

Admittedly this is extremely limiting as most worthwhile gifts, even a decent floral arrangement for a casting director is exceeds that amount, but that is the limitation established by Congress and enforced by the IRS.

You are certainly allowed to spend more, you just can't legally deduct any more for one person.

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.

However, if you were to address the gift to the entire casting OFFICE and there were numerous people in the office, then you would be entitled to write off $25 for EACH person in the office. The same would be true for your agent who might be at a large AGENCY with numerous fellow agents and assistants in the office.

So keep this in mind whenever you send a gift and when you decide on the kind of gift you are sending. It would be hard to argue that a gift certificate to a restaurant was for the entire office, whereas a gift certificate for a delicatessen with a delivery service might be more usable in this regard.

Obviously though, saying "Thank You" properly is ultimately more important than the write off.

Back to Topics

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