Gift card for tenant?

We have a good tenant--he's in his mid-to-late 60s, he's not a complainer, rent is always on time, he's respectful and clean. He's been our tenant for almost 10 years. Of course, things can always change with any tenant, I realize that.

On his "rent anniversary", we'd like to give him a gift card to a local grocery store. Is this considered tax deductible, is it considered part of a "business expense?"

Whether it's deductible or not, we're still planning on giving him a gift card to thank him for being our tenant -- hubby said to go ask my cyberpals at Mr.Landlord if this is deductible so he can make a note of it. :O) Thanks!

--68.8.xxx.xxx

Gift card for tenant? (by Landlord ofthe Flies [TX]) Posted on: May 20, 2019 10:55 PM
Message:

Give him a gift of convenience that you can deduct.

Blown insulation in attic to reduce utility bills. It's an improvement you can deduct.

Free lawn service for three months.

Maybe upgrade an old appliance in kitchen.

Does he have a washer/dryer?

All of these are home improvements that you retain when he leaves and he appreciates while he's there. It may also spur him to stay longer. --108.69.xxx.xxx

Gift card for tenant? (by FG [CA]) Posted on: May 21, 2019 12:28 AM
Message:

LOTF, great ideas, and of benefit, too! Thanks for the suggestions! We've done the insulation in the attic, we have a gardener, put in ceiling fans, replaced all the windows, upgraded the HVAC, bought a new fridge for him (his smile at that was 1000 watts!), the washer and dryer are his own, we upgraded all the fixtures and window treatments, etc etc.

So, is a gift card deductible? --68.8.xxx.xxx

Gift card for tenant? (by Steve [MA]) Posted on: May 21, 2019 5:48 AM
Message:

Every year I purchase some locally made high end chocolates that we repackage in novelty containers which I then give to our business clients. This past Christmas as a way of saying thanks for your patience during some unnecessary completion delays caused by one of my workers, I gave a few of my clients gift cards for a photo shoot. Throughout the year I regularly purchase & give out gift cards from one of our local supermarkets to some of my tenants. I've done this for years & have always taken them as a business deduction without any problems. I imagine if your were purchasing huge quantities of gift cards without be able to show who received them, it might raise a few eyebrows. Even when the IRS audited my taxes they never question this. --96.237.xx.xx

Gift card for tenant? (by WMH [NC]) Posted on: May 21, 2019 6:30 AM
Message:

Yes gift cards are deductible. --50.82.xxx.xx

Gift card for tenant? (by Tom [ME]) Posted on: May 21, 2019 6:53 AM
Message:

If entertainment for business purposes is deductible (which it IS), then of course you will and should deduct this. --98.11.xxx.xxx

Gift card for tenant? (by David [NC]) Posted on: May 21, 2019 6:57 AM
Message:

I buy gift cards and leave them during my quarterly inspections. Tenants appreciate them. Chickfila was last time. This coming time it will probably be SweetFrog (a frozen yogurt place). Yes I deduct them as advertising expense. --65.188.xxx.xx

Gift card for tenant? (by LisaFL [FL]) Posted on: May 21, 2019 7:04 AM
Message:

If I recall it's deductible up to $25. Best to check IRS regulations. --75.89.xx.xxx

Gift card for tenant? (by Robin [WI]) Posted on: May 21, 2019 8:04 AM
Message:

My CPA says business entertainment is no longer deductible. --204.210.xxx.xxx

Gift card for tenant? (by myob [GA]) Posted on: May 21, 2019 9:17 AM
Message:

forget the gifts---- WHO HAS 10 YEAR TENNATS????

With all YOU'VE GIVEN whats your rent and what should it be?

Hold your thought a second-- my gift card just came in from my mortage company!!!!!!!! my power company!!!!! my water company!!!!!!!

--99.103.xxx.xxx

Gift card for tenant? (by Jeff [CO]) Posted on: May 21, 2019 9:39 AM
Message:

They are a business expense, so why wouldn't they be deductible?

As others have pointed out, a 10-year tenant? Very odd.

--76.120.xx.xx

Gift card for tenant? (by Oregonwoodsmoke [ID]) Posted on: May 21, 2019 11:11 AM
Message:

I'd deduct under the line item "advertising and promotion." --98.146.xxx.xxx

Gift card for tenant? (by WL [CA]) Posted on: May 21, 2019 12:04 PM
Message:

I sometime buy my tenants renter's insurance during Christmas holidays for a month or two of coverage. Try to get them started with renter's insurance. One year it rained heavily and the roof leaked. Tenants ended up using the renter's insurance to move out while I had the roof replaced. Win-win! --201.140.xxx.xx

Gift card for tenant? (by WL [CA]) Posted on: May 21, 2019 12:05 PM
Message:

Gift card for tenant? (by FabricGal [CA]) Posted on: May 21, 2019 12:40 PM
Message:

Thanks, everyone!

Fabby --68.8.xxx.xxx

Gift card for tenant? (by LisaFL [FL]) Posted on: May 21, 2019 1:52 PM
Message:

Robin...entertainment is no longer deductible. Gifts given in the conducting of business are still deductible up to $25.

Gifts to tenants are allowed so long as they are not entertainment and the deduction is limited to $25 per family (tenants) or vendor (service provider) he IRS is very clear on this. --75.89.xx.xxx

Gift card for tenant? (by mike [CA]) Posted on: May 21, 2019 5:40 PM
Message:

GREAT IDEA!! 10 year tenants are rare. non whiners are great. and deductible? even if it ain't...the point is to exhibit gratitude. i assure you the guy expects nothing and the gift will be a VERY NICE surprise --76.176.xxx.xxx

Gift card for tenant? (by JB [OR]) Posted on: May 21, 2019 10:33 PM
Message:

Yep. $25 deductible limit. Unchanged since it was implemented in the 1960s. --12.14.xxx.xx

Gift card for tenant? (by FabricGal [CA]) Posted on: May 22, 2019 3:17 AM
Message:

Thanks, Lisa, mike and JB!

--68.8.xxx.xxx

Gift card for tenant? (by Annie [IN]) Posted on: May 22, 2019 11:35 AM
Message:

We have given our apartment tenants $10 gift cards every Christmas (sometimes along with a small box of chocolates), since we bought the complexes 10 years ago. Sometimes they are for WalMart, sometimes for a local Grocery. We think they enjoy this little windfall; sometimes they even send a thank you note to us! --209.132.xxx.xxx

Gift card for tenant? (by Busy [WI]) Posted on: May 22, 2019 11:48 AM
Message:

Yep, $25 per unit is still allowed. Congratulations on having that great tenant.

WL, I like that idea of the renter’s insurance as a gift. That was a win for sure! Btw, to reduce the double post, when you hit submit, watch for a thin blue line to start underneath Mr. Landlord, at the top of your screen. If any portion of that thin blue line is there, your post has been submitted, just sometimes the ( computer elves) are slow.

Oh, and don’t post with a hound dog. in your lap. That helps prevent double posts too! *grin* --70.92.xxx.xxx

Gift card for tenant? (by Fabric Gal [CA]) Posted on: May 22, 2019 1:38 PM
Message:

Thanks, Annie, and Busy, thanks for the grin about the hound dog in your lap! --68.8.xxx.xxx

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Gift card for tenant?

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