Is gift to client tax deductible a business expense?

The IRS allows businesses to deduct gifts given to clients as a business expense, but there is a strict limit of $25 per recipient per year. This means if you give a client multiple gifts throughout the year, the total deduction for that client cannot exceed $25. Gifts that are considered promotional items, such as pens or calendars with your business name, do not count towards this limit if they cost $4 or less. Additionally, items like plaques or trophies are not subject to the $25 limit if they are intended for display and cost $400 or less. It's important to note that incidental costs such as engraving, packaging, or mailing are not included in the $25 limit.