Legal Question in Business Law in New Mexico

Re: gift tax

Legitimate business gifts may be a tax-deductible expense at year's end, but the rules can be tricky. Check with your accountant before making any sizeable gifts to business clients. It matters not through what device a gift is made.

Personal gifts are exempt from gift taxation up to $10,000 per year, per person and per donee. Such gifts apply against the lifetime unified tax credit, however, so, again, consultation with a tax professional is recommended before making any appreciable gift.