What Are The Rules For Business Gifts?

In general, you are allowed to deduct legitimate business gifts up to a maximum of $25 per person, per year. If you are giving a gift to a married couple, unless you have an independent business relationship with EACH of them, the total deductible gift is limited to $25.

Not counted in this maximum are incidental logo items (having your business name, etc.) that cost you under $4. Also not counted are in-store displays and fixtures you provide to the person's business.

For further information, see IRS Publication 463.

(c) Copyright 1995-2015 by TaxLogic