What is the total deductible expense Richard may claim for sending gift baskets to clients?

To determine the total deductible expense Richard can claim for sending gift baskets to clients, it’s essential to understand the IRS guidelines regarding business gifts. According to these guidelines, businesses can deduct gifts to clients up to $25 per recipient per year.

If Richard sent gift baskets totaling $75 to a client, that amount would fall within the allowable deduction limit. Since the total cost of the gift baskets does not exceed the per recipient limit, Richard can deduct the full value of the gift for that specific client.

In this case, if the total of the gift baskets sent was $75, the entire amount is deductible based on the IRS rules, leading to the conclusion that $75 is the total deductible expense he can claim. This understanding of the tax code helps to ensure accurate accounting for business gifts provided to clients and aligns with the general deductibility principles outlined by tax regulations.