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millyhycheung
Returning Member

small business gifts as promotional expenses

How do I claim expenses that were given as gifts to clients an advertising or promotional expenses that were not meals or entertainment? I read on a turbotax tip that  "In some cases, you may also be able to claim 100 percent of the cost of client gifts as an advertising or promotional expense", however, doesn't tell me where to put these expenses. There is an 'other expenses' but references to conferences and 'other related expenses". These gifts were also handmade, as my business is handmade so there are no receipts for them.

 

1 Reply

small business gifts as promotional expenses

As per Canada Revenue Agency (CRA): Advertising and PromotionYou can deduct expenses for advertising and promotion, including amounts you paid for business cards, promotional gifts, and advertisements. You are right you can claim it to 100% percent of the cost of client gifts. Please enter this amount on Line 8520 of form T777 Statement of Employment Expenses.  

 

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