Deductions & credits

You may add up all of your business gifts given and enter the total as "Other expenses (from line 48)", subject to the $25 per person IRS rule.

For example: you give away 10 gifts that cost yon $40 per person.  The total expense will be $400 ($40 x 10), but you may only enter the $25 per person total of $250 ($25 x 10) on your tax return as an "Other expense."

In Section V of your Schedule C form, you will need to list the description and amount of each gift.  Be sure to keep all of your receipts for such gifts in case the IRS should ever ask for proof.  See example image below.

IRS website: Are business gifts deductible?