Money Savings and Tax Tips for the
Holidays

The Holiday Season is finally here. The bright red ornaments, Santa
himself and the dazzling colorful gift-wrapped parcels sitting almost
everywhere in town surely entices you to indulge in the holiday
spirit. The holidays are upon us. It should be a pleasant time, but too
often the enjoyment we experience is followed by financial stress,
worries and/or headache.

Money Savings Tips
January’s bank statements and credit card statements bring the
realization that once again, we have lost control of our spending
habits and busted our budget. Who says we shouldn’t enjoy? We
should enjoy the holiday spirit but remember that enjoying does not
necessarily translate into overspending.

Before the holidays begin, you should consider making a budget.
Estimate the cost of what you plan to buy, and if the total cost is
manageable, then stick firmly to it as you shop. If it’s not, then look
for ways to cut back.

Typically, use the rule of thumb: YOUR CREDIT CARD BILL
FOR THE HOLIDAYS SHOULD BE PAID OFF IN 90 DAYS.
If it takes more than 90 days to pay your holiday credit card off, that
means you spent more than you should have.

Consider ways to save on holiday gifts:

1. Many families can draw names and give one nice gift to a person
rather than multiple small ones.

2. Make or bake gifts instead of buying them.

3. Give combined gifts from parents or children instead of
individuals.

4. Agree with your close friends on a spending limit.
The holidays are a special time for children, too. But here, you
must curb your excesses, so you can teach your children lessons
on spending. Remember, you don’t have to give children every
gift they want.

5. When they make a holiday list, have them prioritize the things
they want.

6. Don’t forget, favored toys are often simple toys that allow them
to use their imagination.

7. Show your children there is more to the holidays than simply
receiving presents.

8. Have them participate in choosing and wrapping presents for a
less fortunate child.

9. Encourage them to make their own gifts for families and friends.

10. Arrange family outings and fun activities, so the holidays
become a series of joyful events.

• Here are some things to remember:
• Set a budget (credit cards should be paid off in 90 days)
• Save on gifts (buy one nice gift instead of multiple small gifts)
• Make or bake gifts instead of buying them
• Give combined gifts from parents or children
• Teach your children how to participate in the holidays (have
  them choose or wrap gifts for a less fortunate child)
• Have children make their own gifts for family or friends

Tax Tips for Holidays
Holiday Meal Deductions are worth 100% deductions (2018 and
later)
It’s that time of the year when the spirit of giving is at its hilt. The
holiday season of spreading joy and good cheer is here and this is the
best time to discuss some little known or used tax deductions that are
available for the business owner during the holiday season.
Typically, if an employer or owner of a small business takes
employees out to lunch, or pays for a gift like a birthday, graduation,
wedding, anniversary, baptism, or bar (bat) mitzvah, then there is
only a 50% tax deduction for the cost of the meal, entertainment
and/or gift.

So, if an employer/owner purchases a small HOLIDAY gift such as
a turkey, ham, or bottle of wine, half of the costs of the purchase is
allowed. The only things that need to be proven to receive this 100%
tax deduction, are the date, place, purpose and dollar amount spent.
This will allow the company or business owner the opportunity to
write off the deduction at 100%.

The IRS does not define what holidays are allowed for this
deduction. So, whether you are Christian, Muslim, Jewish, or belong
to any other faith, you should be able to justify a holiday meal at
100% deduction for a business that is paying for it. You are eligible
to benefit from it if you are self- employed, with employees, or own
a corporation and you are an employee as well.

• Here are some things to remember:
• Holiday meals are fully deductible (100% write off)
• Small holiday gifts that are given are deductible to the
  employer or business owner (ham, turkey, wine)
• The documentation that is required to claim the total
  deduction is the date, purpose of meal or gift, place of meal
  or gift and the dollar amount.

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