As Christmas presents, Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of his two minor children.Lily can deduct $75 (3 ´ $25) as to these gifts.

Question

Quizplus · Accepted Answer

The IRS limits the deduction for business gifts to $25 per recipient per year, so Lily can only deduct $25 for Caden and $25 for each of his children, totaling $75, but only $25 per recipient is deductible.

As Christmas Presents, Lily Sends Gift Certificates (Each Valued at $25)