"Stuart A. Bronstein" wrote:

- quote -

The issue to me was whether it's taxable to the workers, somewhat weighing
"well, if it's income to the recipient it's deductible by the payer." An
employer can give de minimus NON-CASH gifts to employees without inclucing
the value in the employees' income (while deducting the cost). Cash is
taxable as wages.

Of course, OP's situation isn't employer/employee. I like Alan's suggestion
that holiday tips to the service vendors' employees would be an ordinary
and necessary business expense.
--
Phil Marti
Clarksburg, MD

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AES wrote:
- quote -

ordinary and necessary and the amount is reasonable.

If it is common practice in that geographic area for property
owners to tip their service and maintenance workers, then I would
say it is probably an ordinary expense. And if the tip promotes a
healthy relationship with the vendor and is helpful to the
business, I would say it is also necessary. And... as long as the
amount is reasonable, I would conclude it was deductible.

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"Phil Marti" <prm20871[at]verizon.net> wrote:
- quote -

Can't you make and deduct business-related gifts worth up to $25?

Stu

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"AES" wrote:

- quote -

Since you're paying a business for the work, the straightforward way to give
special recognition to the workers would be through their employer. Of
course this would be part of your deductible expense for the rental. It
would also be taxable income to the workers reflected on their W-2's.

If you don't want to go that route and just slip them some cash on the side,
I'd be hesitant to deduct it since it sounds more like a gift to me.
--
Phil Marti
Clarksburg, MD

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

About half our personal residence (on a college campus) has been
converted into long-term separate-entrance studio rentals for students.
So, we deduct a pro rata share of general maintenance costs (gardening,
driveway maintenance, outside painting, etc, all work done by licensed
private firms) against these rents along with appropriate depreciation,
pro rata utility costs, etc (and our tax preparer concurs in this).

SInce we've developed long-term relationships with some of the
maintenance workers involved, we also generally give them a cash tip at
Christmas time. OK to deduct a pro rata share of this as part of the
rental maintenance costs?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >