generally, gifts are never deductible. the exceptions are those business related as follows:
1) business gifts of $25 per year per recipient.
2) items costing $4 or less that contain an imprint of the taxpayer's name and the item is one of a number of identical items the taxpayer widely distributes
3) signs, display racks, or other promotional materials used on the business premises of the recipient
4) incidental costs but only if it does not add substantial value to the gift
5) awards of tangible property costing $400 or less given to an employee for length of service or safety achievement. if the award is part of an established written plan that does not discriminate in favor of highly compensated employees the max is $1,600 annually per employer (not employee)
