When setting up an expense account for gifts( gifts to clients) what detail type do I use- meals and entertainment or advertising.

No text available

Level 15

Gifts are limited to $25 per person as a deductible expense for taxes.

So the only way I see to track this, assuming your gift is more than $25, is two accounts

gift expense-deductible
gift expense- not deductible

and split the purchase - that will make reporting at tax time a little easier

however, if the gift could be considered as entertainment, then it is entertainment and is not deductible.

see this

So, which "detail type" should be used for Client Gifts when setting this up in the Chart of Accounts?

Level 15

@Shelly11_2 wrote:

So, which "detail type" should be used for Client Gifts when setting this up in the Chart of Accounts?

other business expenses

when choosing one of the intuits detail types that they invented, the generic detail type is always safe. expense is expense in accounting

Sign up