Is gift to client tax deductible tax deductible?

The IRS allows a deduction for business gifts, but the deduction is limited to $25 per recipient per tax year. This means if you give a client multiple gifts throughout the year, the total deduction cannot exceed $25. Incidental costs, such as engraving or packaging, do not count toward the $25 limit if they do not add substantial value to the gift. For example, if you give a client a $50 bottle of wine, only $25 would be deductible. However, if you spend $5 on wrapping, the wrapping cost is not included in the $25 limit. Gifts to a client's family members are considered gifts to the client unless there is a bona fide business purpose for the gift to the family member.