How is a gift to a corporation treated?

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1198671

2026-03-19 17:36

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A gift to a corporation is typically treated as a non-deductible expense for tax purposes. Unlike gifts to individuals or charities, corporate gifts do not garner tax deductions under the Internal Revenue Code. However, businesses may still treat gifts as ordinary business expenses if they serve a legitimate business purpose, such as fostering client relationships. It's essential for corporations to maintain proper documentation of such gifts for accounting and tax reporting.

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