Can someone become involved in a gifting circle if they own a business? And will they be taxed for their gift.
1 Answer from Attorneys
Re: gift tax
Legitimate business gifts may be a tax-deductible expense at year's end, but the rules can be tricky. Check with your accountant before making any sizeable gifts to business clients. It matters not through what device a gift is made.
Personal gifts are exempt from gift taxation up to $10,000 per year, per person and per donee. Such gifts apply against the lifetime unified tax credit, however, so, again, consultation with a tax professional is recommended before making any appreciable gift.
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