Question

Can anyone help please with this my tax hw?

Instructions: Determine if the gifts and awards given to the employee are taxable or not-taxable. Place an "X" in the correct column. Include an explanation for your answer. Exercise #1: The employer received the following gifts and awards: Gifts and Awards Value Taxable Non-taxable Explanation T-shirt with employer logo $15 (cost) Birthday gift (gift certificate) $75 $400 Reward for meeting sales performance target (weekend holiday) $275 10 year anniversary award (art print): the last anniversary award was received 5 years previously. Wedding gift (crystal vase) $300 Innovation and Excellence Award (tickets $250 to a sporting event) Fall 2020 1 Gifts and Awards Value Taxable Non-taxable Explanation Holiday season gift (watch) $150 Total $1,465

Answer 1

Tshirt with Employer Logo will be non taxable, this is a gift with minimal value and falls under the rule of de minimus.

Birthday Gift is taxable since any certificate which are redeemable for merchandise or points shall be taxable

Reward for meeting sales performance target will be taxable since a vacation trip for meeting a sales goal is taxable

10 year anniversary award will be non taxable, because it is a tangible personal property awarded to employees for the length of service

Wedding Gift will non taxable as it is received on marriage and therefore the amount or price of the gift shall not be considered

Innovation and Excellance award received, tickets to a sporting event shall be taxable since the amount exceeds the de minimis rule amount of dollar 75

Holiday season gift watch received, shall be taxable since the amount exceeds the de minimis rule amount of dollar 75

Coffee Mug will be non taxable, this is a gift with minimal value and falls under the rule of de minimus.

Social Committees 50/50 draw employer doesnt fund or control the social committee will be non taxable since the employer is not funding or controlling the commitee

Gift card on birth of first child is taxable since any certificate which are redeemable for merchandise or points shall be taxable

Holiday gift a voucher for turkey shall be non taxable since the amount doent exceed the de minimis rule amount of dollar 75

An award for 3 years of service will be non taxable, because it is a tangible personal property awarded to employees for the length of service

Award on recognition of running the company charity drive shall be taxable since it is an achievement award and achievement awards are taxable

Birthday Gift, tickets to a Concert shall be taxable since the amount exceeds the de minimis rule amount of dollar 75