Can I write off gifts to clients?

Gifts to clients are tax deductible, but they are subject to a limit of $25 per person per year. This limit applies to both direct and indirect gifts. For example, if you buy a $100 gift for a client's family, it's still considered as a gift to the client and the deductible amount is limited to $25. However, incidental costs such as engraving, packaging, insuring and mailing, are generally not included in determining the cost of the gift. Also, promotional items that cost $4 or less and have your name clearly and permanently imprinted on the gift, and are widely distributed, are not considered gifts and are fully deductible.