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Business Gift Deduction

BUSINESS GIFT DEDUCTION: IRS Publication #463

Business gifts given to customers, clients, or prospects are a deductible business expense.

But.

The maximum allowed deduction is limited to $25 per recipient per year.

The value of any gift(s) over the $25 maximum allowed deduction is not deductible.

Recordkeeping Requirements

Business will need to track and keep a written record of all business gifts for each recipient that includes:

1-The date(s), description, and amount of each gift given to the recipient.

2-The reason for the gift.

3-The recipient's name and relationship to the business.

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