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 · Accepted solution]

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.

[mike47]

Very helpful, thanks so much!

[JohnW15]

You're welcome!  Have a great week!