Loyalty Card redemption

[LP111960]

I reward my customers with punches on a loyalty card.  When the card is full they can redeem for $25.00 off a purchase.  Is the $25 tax deductible as a expense?

[PattiF]

Yes, the $25 is tax-deductible as a business expense. No more than a $25 expense can be deducted for each person during the year. See this IRS faq.