Sharing Daily Discoveries About Personal Finance And Business Topics

Factoring Taxes For Gift Values

large business and finance

Like most people I usually have a set amount of money that I usually spend on gifts for various occasions. Especially now that it is the Christmas season, there is a list of people I have to shop for. I was talking to a friend other who mentioned that he wanted to buy this item as a gift that was tagged at about $50 which was pretty much on the ball in terms of how much he was willing to spend. However, he mentioned that after taxes it would be over the amount and so it was out of the question.

That was interesting I thought as I personally don’t see many people who factor in taxes as part of the total amount in terms of gift giving. Example, if one’s budget was $20 for gifts then they would most like buy it as long as the item is $20 before taxes. If I wanted to get someone an item that was in the $100 range then the taxes would play a role for me. However, it was in the $20 range then I don’t consider the taxes substantial enough to be a factor.

I guess that’s why gift cards can be good sometimes too as you can give them exactly the value that you originally intended to spend without the hassle of calculating the taxes and all.

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