$25 Business Gifts Limit Exceptions and Tips
Did you know that the cost of engraving or imprinting is not part of the $25 business gifts limit?
Neither is gift wrapping, artwork, setup, insuring, mailing, packaging! These costs are fully deductible as “Incidental Costs”.
Neither is the limit applicable if the gift is intended for use by enough people within a department to cover the $25 per recipient. Therefore, you can spend $100 for a thank you gift to the customer service department which has 4 people.
There is nothing to prevent spending more than $25 on a business gift as long as you only claim the $25 per person per year as a deductible expense.
The IRS $25 limit is applied per person per year.
Some larger companies have limits on gift sizes to individuals within the company. This policy is usually applied to prevent influencing buying decisions.
For more information, see the IRS Publication 463.
Some of our items include the cost of set up, engraving, imprinting, etc. Let us know if you need an itemized invoice breakdown for your tax records or ask for the breakdown from other suppliers you may use.
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Tags:business gifts, corporate gifts, promotional gifts, Promotional Products
