Gift deductible

Gift deductible

Example

Sally is carrying on a renovation business. Sally gifts a bottle of champagne to a client who had a renovation completed within the preceding 12 months

Sally expects the gift will either generate future business from the client or make them more inclined to refer others to her business. Although Sally got on well with her client, the gift was not made for personal reasons and is not of a private or domestic character.

The outgoing Sally incurred for the champagne is not of a capital nature.

Sally is entitled to a deduction under section 8-1 of the ITAA 1997.

https://www.ato.gov.au/law/view/document?docid=%22TXD%2FTD201614%2FNAT%2FATO%2F00001%22

 

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