mike47
New Member

As a freelance photographer (sole proprietor), I give Christmas gifts to my best clients, usually in the form of Starbucks gift cards. Are those gift cards deductible?

 
JohnW15
Intuit Alumni

Deductions & credits

Yes, they are.  However, the deduction is generally limited to $25 per client, per year (plus incidental expenses, such as packaging and mailing).

Please see "$25 Limit" on page 14 of IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses  for more information.

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mike47
New Member

Deductions & credits

Very helpful, thanks so much!
JohnW15
Intuit Alumni

Deductions & credits

You're welcome!  Have a great week!