Your bi-weekly dose of bookkeeping and small business financial tips to help you make sound financial decisions with confidence.

Happy Wednesday Reader!
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Giving your clients a gift this year?

It’s that time of year when you’re thinking about client appreciation, but before you splurge on personalized water bottles or custom gift baskets, let’s dive into some client gifting dos and don’ts from a financial perspective. Trust us—your accountant will thank you!

This week's news:

New Per Diem Rates Effective October 1, 2024 Special per diem rates become effective Oct. 1 to substantiate the amount of expenses for lodging, meals and incidental expenses when taxpayers travel away from home. ​ ​The new notice covers: Rate for the incidental expenses only deduction Meal & incidental expense rates for the transportation industry Annual high-low rates for the high-low substantiation method ​ Read More!

Now that you've got the latest tax update,
let's talk about those client gifts.

🎁 The Do’s and Don’ts of Client Gifting:

• DO keep the value in mind.​
  ​According to the IRS, client gifts are deductible—but only up to $25 per person, per year. So, if you’re thinking of giving high-ticket items, it might be best to keep those for personal gestures or go for something meaningful yet modest.​
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• DON’T ignore the cost of “extras.”​
  ​Items like wrapping paper, delivery fees, and any extra add-ons should be factored into your total gift budget—they can add up quickly!​
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• DO get creative with your gifts.​
  ​How about a personalized notebook for those who love jotting down ideas, or a handcrafted holiday ornament? Other clever ideas could include local goodies like a coffee subscription from a nearby roaster or a unique desk plant.​
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• DON’T forget about tax rules on entertainment.​
  ​Be mindful that gifts labeled as “entertainment” (think concert tickets, sporting events, or spa days) come with different tax rules. In most cases, these items are non-deductible, so plan accordingly!​
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• DO consider e-gifts​
  ​Digital gift cards or online experiences are not only tax-friendly but also quick and easy, ensuring your client receives a thoughtful gift while staying within the IRS’s $25 limit. Plus, it’s a great option for remote clients!

Tax Due Dates Coming Up:

• October 16, 2024: Extended deadline for filing 2023 tax returns if you filed for an extension.
• January 15, 2025: Fourth-quarter estimated tax payment due for self-employed individuals.

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Have a fantastic week, friends; thank you for subscribing!

Cheers, Amber

Brought to you by Dogwood Mtns Business Services, LLC.

113 Cherry St #92768, Seattle, WA 98104-2205
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