Pub 529

Gift expenses. You can generally deduct up to $25 of business gifts you give to any one individual during the year. The
$25 limit does not apply to:

• Widely distributed items costing $4 or less that display your name, or
• Signs, racks, and promotional materials to be displayed by the recipient.

Pub 535

Gifts of nominal value. If, to promote employee goodwill, you distribute turkeys, hams, or other merchandise of
nominal value to your employees at holidays, the value of these items is not salary or wages. You can deduct the cost of
these items as a business expense even though the employees do not include the items in income.

If you distribute cash, gift certificates, or similar items readily convertible to cash, the value of these items is additional
wages or salaries, regardless of the amount or value.