Question:
When giving referral gifts how much is the maximum you can spend and be allowed to claim on your taxes.....by referral gifts I mean gifts you give to people who refer a client to you. How much are we allowed to give to buyer clients who have just bought a house and we can claim on taxes?

Answer:
Per TREC regulations, you are allowed to spend a maximum of $50.00 on gifts to people who refer a client to you. To buyer clients, there is no limit as to how much you are allowed to give back to them. Keep in mind that most, if not all lenders want those amounts to be disclosed during the loan processing time so that they can make a more accurate determination as to whether the buyers are truly financially prepared to handle their mortgage payments.