Business gifts are deductible up to $25 (see specifics in the tax code), and this $25 is in addition to shipping/tax. But I will tell you based on some Schedule C audits we are aware of, the IRS thinks it is just $25.... eg. You send flowers for $50....$25 is for the flowers and $25 is for delivery/tax. The whole $50 should be deductible as a business expense, but the IRS adjusted it to $25, which actually isn't correct.
