How much can a company gift be before it is income.

[DVK916]

Which of these would have to reported as income.

1) A $20 gift certificate to a local restaurant.
2) A $35 day planner.
3) A $300 digital camera
4) A $1500 notebook
5) A $10000 watch.

Which of the 5 items would have to be reported as income, more than 1 might be income. Can any of these be claimed as a gift.

 

[Pepsi90919]

0

 

[sisq0kidd]

A company can gift to its employee up to $500.

 

[DVK916]

Originally posted by: sisq0kidd
A company can gift to its employee up to $500.

Then the rest is considered income?

Are companies required to reports gifts over $500 on the W2 under wages.

 

[FoBoT]

the company i work at counted a $50 gift certificate as income

 

[sisq0kidd]

Originally posted by: DVK916

Originally posted by: sisq0kidd
A company can gift to its employee up to $500.

Then the rest is considered income?

Are companies required to reports gifts over $500 on the W2 under wages.

I'm mistaken, it's $400.

A company can deduct up to $400 as a gift to its employee as long as the gift is for "length of service." So I assume the company will carry over the rest of the money as wages under your W2.

If the gift is for other reasons, it needs to be under $25 for it to be considered a gift or else it's income.

I'm not 100% sure, so maybe a CPA can come in here and shed some light.

 

[bctbct]

Originally posted by: FoBoT
the company i work at counted a $50 gift certificate as income

cheap bastards!

 

[kalrith]

I got a $100 Christmas bonus in cash before, and it wasn't reported as income.

 

[DVK916]

Originally posted by: kalrith
I got a $100 Christmas bonus in cash before, and it wasn't reported as income.

Just because the company didn't report it, it doesn't mean you weren't suppose to.

 

[sisq0kidd]

Originally posted by: kalrith
I got a $100 Christmas bonus in cash before, and it wasn't reported as income.

lol that has nothing to do with income tax law. That has everything to do with illegal bonuses and you and your company can get in trouble for it.

But eh, I'm not a laywer and loathe the IRS so more power to you.

 

[Midlander]

The IRS says $25 except for a few special circumstances. That's per year, not per gift.