How do I deduct client gifts tax deductible on my taxes?

You can deduct up to $25 for business gifts you give to each person during your tax year. If you give a gift to a client that costs more than $25, you can only deduct $25 of that amount. Incidental costs, such as engraving on jewelry or packaging, are not included in the $25 limit if they don't add substantial value to the gift. Gifts to a company that is not closely related to a specific individual are not subject to the $25 limit. For example, if you give a fruit basket costing $50 to a client, you can only deduct $25. However, if you give a $20 gift to each of the five employees of a company, you can deduct the full $100 as long as the gifts are not intended for a specific individual.