Is tax deductible gifts to clients tax deductible?

The IRS allows a deduction for business gifts up to $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. If a gift exceeds this amount, only $25 is deductible. Incidental costs such as engraving, packaging, or shipping are not included in the $25 limit. Gifts that are considered promotional items with your business name permanently engraved and costing less than $4 are not subject to the $25 limit. Additionally, gifts to a company rather than an individual are deductible if it is impractical to identify the recipient. However, gifts to employees are subject to different rules.