are client gifts tax deductible

The IRS allows businesses to deduct up to $25 for business gifts given to each recipient per year. This limit applies regardless of the number of gifts given to the same person. If a gift exceeds $25, only $25 is deductible. Incidental costs such as engraving, packaging, or mailing are not included in the $25 limit. For example, if you give a client a gift worth $30, you can only deduct $25. However, if you also spend $5 on shipping, the total deductible amount would be $30 ($25 for the gift and $5 for shipping).