IRC § 263(a) vs. the $25 Business Gift Limit: How Private Equity & M&A Controllers Document Deal Closing Crates
A practical accounting and procurement guide distinguishing capitalized transaction facilitation costs under Treas. Reg. § 1.263(a)-5 from ordinary IRC § 274(b)(1) promotional gifts.
Enacted in 1962 and never indexed for inflation, the $25 business gift deduction cap of IRC § 274(b)(1) routinely trips up uncoded corporate gifting—while M&A closing artifacts tied to a specific transaction are documented under IRC § 263(a) and Treas. Reg. § 1.263(a)-5.
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