The IRS allows you to $25 or less for business gifts you give to any one person during your tax year, whether directly or indirectly. Any amount in excess is non-deductable. Gifts your spouse gives to the same person or gifts given to someone who you reasonally expect will give it to the same person combine to count against that limit. However, keep reading for special treatment of certain types of gifts.
Employee gifts are considered wages and are deducted under the rules for wages, not gifts.
There are some exceptions to the gift rules, such as small items with a value of $4 or less, like pens with your company name imprinted, that are one of a number of identical items that are widely distributed. Signs, display racks, and other promotional materials are excluded as well.
Gifts that could be considered gifts or entertainment, should be deducted as an entertainment expense, which is limited to a 50% deduction.
If you give customer packaged food or beverage gift to use at a later time, treat it as a gift.
Source: IRS Pub 463