Is are client gifts tax deductible a valid tax write-off?

The IRS allows a deduction for business gifts given to clients, but the deduction is capped at $25 per recipient per year. This means if you give a gift worth $50, only $25 is deductible. Incidental costs such as engraving or packaging do not count towards the $25 limit if they do not add substantial value to the gift. Gifts to a company are considered gifts to the individual(s) who benefit from them, unless you have no reason to know who the ultimate recipient is. Gifts that are promotional items with your business name permanently imprinted and cost $4 or less are not subject to the $25 limit.