What is the maximum deductible amount for business gifts per recipient?

The maximum deductible amount for business gifts per recipient is $25. This limit is set by the IRS and applies to gifts given to clients, customers, or other business associates. It's essential for taxpayers to note that if a business provides multiple gifts to the same individual, the total deduction for all gifts must still stay within this $25 limit on a per-recipient basis for the year.

In practice, even if a more expensive gift is given, the deduction permitted remains capped at $25, reinforcing the IRS's intent to limit deductions for business gifts primarily to a nominal value. This threshold is designed to reflect the business's intent in maintaining client relationships without allowing for excessive deductions that could complicate taxation further.