There’s really nothing more valuable to a business than good employees, particularly those who stick with you for years and years.
One way to honor those employees is to give them a meaningful present or award.
The tax code includes a special carve-out for “employee achievement awards,” which means that when you buy something for your employees in recognition of their years of service, you get a tax break—and your employees do, too.
A lasting present for your valued employees, plus tax breaks all around—that should make for a pleasant day at the office.
Even better, if you operate your business as a C corporation, you can receive these tax-free awards yourself because even though you’re an owner, you’re an employee, too. And with the work you put into making your business hum and researching ways to cut your tax bill, we think you deserve some recognition.
But for some reason lawmakers filled this area of the law with bizarre—and ridiculous—traps, so you need to ... Log in to view full article.