Business Gift Deductions: What You Should Know
Business gift deductions are generally capped at $25 per recipient per year, but exceptions exist for gifts to companies, couples, and incidental costs like packaging or shipping. Employee gifts follow different rules: cash or gift cards count as taxable wages, while small noncash items may qualify as tax-free fringe benefits. Accurate documentation of gift details and business purpose is essential to maximize deductions and remain compliant.




