Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 3:38:21 AM

Are business gifts to clients allowable expenses for a Sole Proprietor?

I have purchased Christmas gifts for clients and wanted to make sure they are an allowable expense on Sch C or not?

0 1 1150
1 Replies
Level 9
Jun 6, 2019 3:38:22 AM

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

https://www.irs.gov/publications/p463#en_US_2016_publink100033905