Can I deduct client gifts tax deductible?

The IRS allows businesses to deduct up to $25 for business gifts given to each individual recipient per tax year. This means if you give a gift to a client that costs more than $25, only $25 of that cost is deductible. Items that are considered promotional materials, such as pens or calendars with your company name, are not subject to this limit if they cost $4 or less and are distributed widely.