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Celebrate the Season and Save: Tax Deductions for Holiday Parties
ARTICLE | December 06, 2024
Authored by Vasquez + Company
As the holiday season approaches, many businesses plan celebrations to bring their teams together. But did you know your company holiday party may also bring financial benefits? This article explores the tax rules surrounding holiday parties and employee gifts, explaining how to maximize deductions while staying compliant.
Key Points:
- Holiday Party Deductions: Qualify for a 100% deduction on company-wide party expenses if certain IRS conditions are met.
- Employee Gifts: Understand the tax implications of gifting cash, gift cards, or de minimis benefits like holiday turkeys.
- Guest List Matters: Costs for employees and their significant others are deductible, but expenses for social guests aren’t.
- Recordkeeping Tips: Maintain detailed receipts and the party isn’t overly extravagant to safeguard deductions.
With proper planning and documentation, your company can celebrate the holidays and enjoy significant tax benefits.
For more details, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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Vasquez + Company LLP has over 50 years of experience in performing audit, tax, accounting, and consulting services for all types of nonprofit organizations, governmental entities, and private companies. We are the largest minority-controlled accounting firm in the United States and the only one to have global operations and certified as MBE with the Supplier Clearinghouse for the Utility Supplier Diversity Program of the California Public Utilities Commission.
For more information on how Vasquez can assist you, please email solutions@vasquezcpa.com or call +1.213.873.1700.
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