If you give gifts in the course of your trade or business, you can deduct all or part of the cost. You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. The following items are not considered gifts for purposes of the $25 limit:
- An item that costs $4 or less and has your name clearly and permanently imprinted on the gift, and is one of a number of identical items you widely distribute. Examples include pens, desk sets, and plastic bags and cases.
- Signs, display racks, or other promotional material to be used on the business premises of the recipient.