USA IRS rules on holiday gifts as business deduction...

[Moses_1592]

I am a dentist who works at a practice as an independent contractor. I do business through a passthrough LLC. My hygienist and assistant are technically employed through the practice owner's S-Corp, and what I pay them hourly is deducted from the check I receive at the end of the month which is based on my collections.

That being said: I (my passthrough LLC, rather) paid around $2000 last year in Christmas gifts for my assistant, hygienist, and our receptionist. Can I write off these gifts?

The auxiliary staff that I work with (but do not necessarily pay) on a day-to-day basis also receive gifts from me each year. Can these be deducted? Keep in mind these staff are employed through the owners S-corp. I am an independent contractor working for the S-corp.

My LLC also paid a consulting firm $2000 to have the practice appraised since I may buy into it in the future. Can this be deducted?

Several times throughout the year I have taken the office staff out to dinners where the practice was discussed. Can this be deducted if receipts are saved?

This is all under the assumption I have receipts (which I do) to prove the purchases.

For the office staff I typically write them a check (from my LLC) as a birthday gift. Can this be deducted?

Last year I purchased about $1200 in lottery tickets as card stuffers for office staff birthday gifts. I wrote a check from the LLC to the LLC, cashed it, and in the memo stated "Jane Smith birthday gift lotto tickets". Can I deduct the cash purchase of the lottery tickets since receipts are not provided for lottery tickets in my state?

 

[Drmdcpa]

Gifts when there is a working relationship are limited to the following:

$25 per year per person with the following exceptions:

Longevity awards
Safety awards

Said awards are limited in dollar amount and frequency.

It sounds like you more than violated the limits.