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| | December
2002 On-line Tax Planning
Holiday
Surprises
The federal tax code doesn't seem like the place
to find much in the way of holiday cheer. But businesses looking to
celebrate can take advantage of a few rules.
 | Usually, a company may deduct only 50% of
business meal and entertainment expenses. But the full cost of an
occasional party for employees and their guests is deductible. |
| Planning to use the occasion to hand out
employee achievement awards? Again, a business may deduct the full
cost of such awards, assuming several requirements are met. |
| Now for the gifts. Merchandise of
nominal value - including those hams and turkeys - may be given to employees
with no negative tax consequences. But gifts of cash or gift
certificates readily convertible to cash, regardless of the amount or value,
must be included in employee's taxable wages. |
Please give us a call, at your convenience, for
more information.
Tax
Planning Archives
For More Information Contact:
Bucheri McCarty & Metz LLP
2366 W. Boulevard
P.O. Box 2147
Kokomo, IN 46904-2147
Telephone: (765) 236-2300
FAX: (765) 236-2333
Internet:
info@bmmcpas.com
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