Is client gifts tax deductible tax deductible?

The IRS allows businesses to deduct up to $25 for business gifts given to each individual recipient per year. This limit applies to gifts given directly or indirectly. For example, if you give a gift to a client's family member, it is considered an indirect gift to the client. Incidental costs such as engraving or packaging are not included in the $25 limit if they do not add substantial value to the gift. However, gifts that are considered entertainment, like tickets to a sporting event, are not deductible as gifts but may be deductible as entertainment expenses under different rules.