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  • Aug 4th, 2017 5:56 pm
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[OP]
Jr. Member
Aug 23, 2016
134 posts
20 upvotes

Gift Card Expense

Hello I'm a sole proprietor and was wondering if I was purchase a gift card for one client as a thank you for some referrals they provided, am I able to expense that cost?
9 replies
Deal Addict
Oct 7, 2007
2867 posts
602 upvotes
I would recommend googling gifts and gift cards on the Canada Revenue Agency website. I seem to recall seeing some detailed info on gifts on the CRA website. Gift cards might be thought as cashlike and may require special treatment.
Sr. Member
User avatar
Dec 13, 2016
836 posts
635 upvotes
How do you declare a gift card?.
Who's to say you just didn't get a gift card for yourself?

Question for experienced members, not op.
[OP]
Jr. Member
Aug 23, 2016
134 posts
20 upvotes
I will check out the CRA website and see what I have come up with.
Deal Addict
User avatar
Dec 30, 2007
4024 posts
312 upvotes
im going use your thread for my question, hope u dont mind.

We buy gift cards for our employees to buy supplies, at the end of the year do we use the receipt they give us as the expense or the actual purchase of the card?
Sr. Member
Oct 8, 2008
713 posts
63 upvotes
urir10 wrote:
Jul 13th, 2017 2:11 pm
im going use your thread for my question, hope u dont mind.

We buy gift cards for our employees to buy supplies, at the end of the year do we use the receipt they give us as the expense or the actual purchase of the card?
Receipt of the actual expense. A gift card is only a payment method and is essentially just cash that is restricted to be used at a particular business).
Newbie
Apr 25, 2017
81 posts
50 upvotes
urir10 wrote:
Jul 13th, 2017 2:11 pm
im going use your thread for my question, hope u dont mind.

We buy gift cards for our employees to buy supplies, at the end of the year do we use the receipt they give us as the expense or the actual purchase of the card?
You can count those gift cards as "bonuses" on your payroll.
You can give maximum $500 worth of gift to each employee per year.
And you don't have to take the receipts back from your employees if you do it this way.
Deal Addict
User avatar
Dec 30, 2007
4024 posts
312 upvotes
NtodaL wrote:
Jul 26th, 2017 12:58 am
You can count those gift cards as "bonuses" on your payroll.
You can give maximum $500 worth of gift to each employee per year.
And you don't have to take the receipts back from your employees if you do it this way.
interesting, but we do way over 500
Newbie
Jun 3, 2008
22 posts
2 upvotes
Newmarket
A few things about the $500. Has to be a salaried employee. Max $500 with tax, cannot go over. Needs to be for a special event - anniversary, birthday, Christmas etc. One of the few non-taxable benefits left.

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