Can freelancers deduct client gift tax deduction?

Client gifts are deductible as a business expense, but the IRS limits the deduction to $25 per recipient per year. This limit applies regardless of the actual cost of the gift. For example, if a freelancer gives a client a gift worth $50, only $25 is deductible. Gifts to a client’s family members are considered gifts to the client unless there is a bona fide business connection with the family member. Items that are promotional in nature and cost less than $4, or items that have the business's name permanently engraved, are not subject to the $25 limit.