How do I deduct gift to client tax deductible on my taxes?

You can deduct up to $25 for business gifts you give to each person during the tax year. If you give a gift to a client and their spouse, the $25 limit applies to the combined gifts given to both. Incidental costs, such as engraving or packaging, do not count toward the $25 limit. However, gifts that are considered entertainment, such as tickets to an event, are not deductible as gifts, but may be deductible as entertainment expenses under different rules. Promotional items with your business name that cost $4 or less are not subject to the $25 limit.