Can freelancers deduct client gifts tax deductible?

Client gifts are deductible as a business expense, but the IRS imposes a $25 limit per recipient per year. This means if you give a gift worth more than $25, you can only deduct $25 of that gift. Items that are clearly promotional in nature, such as pens or calendars with your business name, do not count towards this limit if they cost $4 or less. Additionally, gifts to a company that are intended for the use of the company and not a specific individual are not subject to the $25 limit. However, it's crucial to ensure that the gift is not classified as entertainment, which has different deductibility rules. For example, taking a client to a concert would fall under entertainment, not a gift.