Blog
Blog
If you spend $𝟯𝟬𝟬 on a holiday gift basket for a referral partner…
If you spend $𝟯𝟬𝟬 on a holiday gift basket for a referral partner…
The IRS says you can deduct…
✔ $𝟮𝟱.
Not $250.
Not “most of it.”
𝗧𝘄𝗲𝗻𝘁𝘆-𝗳𝗶𝘃𝗲 𝗱𝗼𝗹𝗹𝗮𝗿𝘀. 😑
And believe it or not, this threshold has been in effect and unadjusted for inflation since 1962.
Here’s the rule in plain English:
🎁 Business gifts are deductible…
…but only up to $𝟮𝟱 𝗽𝗲𝗿 𝗽𝗲𝗿𝘀𝗼𝗻 𝗽𝗲𝗿 𝘆𝗲𝗮𝗿.
𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝗜 𝘁𝗲𝗹𝗹 𝗺𝘆 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿 𝗰𝗹𝗶𝗲𝗻𝘁𝘀 𝘁𝗼 𝗱𝗼 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 👇
✔ 𝟭) 𝗦𝘁𝗼𝗽 𝗯𝘂𝘆𝗶𝗻𝗴 𝗴𝗶𝗳𝘁𝘀 𝗲𝗺𝗼𝘁𝗶𝗼𝗻𝗮𝗹𝗹𝘆
If you want to gift big, cool — but treat it like a 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁, not a tax strategy.
✔ 𝟮) 𝗞𝗲𝗲𝗽 𝗶𝘁 𝗰𝗹𝗲𝗮𝗻 𝘄𝗶𝘁𝗵 “T𝗵𝗲 $𝟮𝟱 𝗖𝗹𝘂𝗯”undefined
If you want simple books and no drama:
• $25 Home Depot card
• $25 Amazon
• $25 Starbucks
Easy. Fully deductible. Done.
✔ 𝟯) 𝗨𝘀𝗲 𝘁𝗶𝗲𝗿𝘀 𝗹𝗶𝗸𝗲 𝗮 𝗿𝗲𝗮𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀
Not everyone deserves the same spend.
Build levels like this:
Tier 1: $25 (prospects + new relationships)
Tier 2: $50–$150 (steady referral partners/vendors)
Tier 3: $200–$500 (your top 5 who PRINT money)
✔ 𝟰) 𝗦𝗽𝗿𝗲𝗮𝗱 𝗶𝘁 𝗼𝘂𝘁
Instead of 1 big $200 gift…
Do 𝟴 𝗴𝗶𝗳𝘁𝘀 𝗮𝘁 $𝟮𝟱.
More relationships = more referrals = more work.
✔ 𝟱) 𝗧𝗿𝗮𝗰𝗸 𝗶𝘁 𝘄𝗶𝘁𝗵 𝗮 𝟭-𝗹𝗶𝗻𝗲 𝗴𝗶𝗳𝘁 𝗹𝗼𝗴
Audits don’t accept “good vibes.”
They accept documentation.
Gift strategically. Track it cleanly. Otherwise you miss out on deductions and ROI.