Listen up: The IRS says you can deduct gifts to customers, but only up to $25 per person per year. TWENTY-FIVE DOLLARS. That’s barely enough for a couple of Batarangs, let alone something that leaves a lasting impression.

Doesn’t matter if you buy them a gold-plated Bat-Signal or a hand-crafted Wayne Enterprises fountain pen—it’s still just $25. Anything beyond that? You’re on your own. No deduction. Gotham’s tax collectors don’t care how much you spent trying to keep your business relationships alive.

Loopholes? Maybe. But Be Careful.

Now, if you’re thinking, “What if I buy a bunch of gifts and split them up?”—nice try, but the IRS is watching. If it’s meant for a group (like a company-wide gift basket), the $25 rule applies to the first recipient who benefits from it. Not every person in the company. Yeah, I know. It’s ridiculous.

But here’s where it gets tricky: Branded items that cost less than $4 and are mass-distributed aren’t subject to the $25 rule. So, if you slap your business name on some cheap stress balls or pens, you might be able to write those off fully. Congratulations.

Entertainment vs. Gifts—The IRS Loves Technicalities

Maybe you’re thinking of taking a client to a fancy Gotham steakhouse instead. Hold your utility belt—entertainment expenses follow different rules. In some cases, if you give a gift alongside entertainment (like a bottle of aged whiskey after dinner), you have to choose which category to deduct it under. Spoiler: The IRS doesn’t let you double-dip.

Keep Records—Unless You Enjoy IRS Audits

If you’re deducting customer gifts, document everything. Who got it, what it was, and why you gave it. No records? No deduction. And trust me, you don’t want to be in a room with IRS auditors—they make the Riddler’s puzzles look like child’s play.

Final Verdict: Be Smart, Not Generous

Look, I get it. You want to impress clients, build relationships, maybe even look like a hero in their eyes. But the IRS? They don’t care. They see customer gifts as a barely deductible afterthought. So, if you’re gonna spend money on gifts, do it because it makes sense for your business—not because you think you’ll get a tax break.

Or, you know, just keep it under $25.

Stay vigilant. Stay deductible.