The maximum deduction you can take for a business gift is $25 per recipient, per year, any amount over is taxable. It’s important to understand that incidental gift costs do not count towards the $25, i.e. gift wrapping, shipping, engraving. It is not considered an incidental cost if it adds substantial value to the gift, i.e. buying a glass vase for a bouquet of flowers.
Remember, if you give your customer a gift ($25 maximum) for his/her child’s graduation celebration or special occasion, it will be treated as a gift directly to the customer UNLESS there is proof an actual business relationship with his/her child. In other words, you have already take the deduction for this customer and any other gifts given will be taxable.