Free cheat sheet · Seasonal
Client Gifts, Parties & Holiday Write-Offs
What’s deductible, what’s limited, and what’s secretly taxable — before you spend a dollar on holiday goodwill.
The strangest corner of the tax code
Some holiday spending is 100% deductible, some is capped at $25 per person (a limit unchanged since 1962), and some is taxable income to the person you gave it to. The gift card you hand your crew? That belongs on their W-2 — any amount.
The highlights
- Company holiday party: 100% deductible — one of the last full meal deductions — if it’s genuinely for the team.
- Branded merch (hats, koozies) escapes the $25 gift cap entirely.
- Client entertainment (game tickets, golf) stopped being deductible in 2018 — the meal portion may survive at 50% if separately invoiced.
One page, whole map
Print the cheat sheet before you do your holiday shopping and gift smart — a $23 bottle with your logo beats a $60 basket you can only deduct $25 of.
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