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New Member
posted May 31, 2019 7:51:55 PM

If I send small gifts to my customers in the mail, candy, lipgloss, etc. how is that categorized and is it deductable?

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3 Replies
New Member
May 31, 2019 7:51:57 PM

hi also just wondering if you paid 50 dollars for the gift do you think half the value can be deducted or just  25 dollars of the total price of what you paid whatever the cost of the gift was

New Member
May 31, 2019 7:51:59 PM

If you have one gift that was $50, that should be OK.  However, it would be a good idea to keep the IRS guidelines in mind for the future.

New Member
May 31, 2019 7:52:07 PM

Yes, the cost of the gifts you send to your customers is deductible.  The maximum value of gifts that can be deducted is $25 per person.

Additional information about gifts can be found here:  https://www.irs.gov/publications/p463/ch03.html

You will want to include this expense in Other miscellaneous expenses. For the description, please enter Client gifts (or customer gifts).