Gift Card Taxation
I asked this question on the APA's ListServ, and I agree with the answer but thought I'd ask here to see if anyone has a different one. A manager purchased some $100 gift cards for $80 each, to give to employees. This was not an employer discount price but the price any customer would pay. The amount turned in for me to tax was $80. I believe the value of the gift cards, $100, should be taxed. Your thoughts?