Is gifts for clients tax deductible tax deductible?

The IRS allows businesses to deduct gifts given to clients or customers as a business expense, but there is a strict limit of $25 per recipient per year. This means if you give a gift worth $50 to a client, only $25 is deductible. Incidental costs such as engraving, packaging, or shipping are not included in the $25 limit. However, gifts that are considered entertainment, such as tickets to an event, are subject to different rules and may not be deductible as gifts. It's crucial to distinguish between gifts and entertainment expenses to ensure compliance. For example, a personalized pen given to a client is a deductible gift, but taking a client to a concert is not deductible as a gift.