I have my first group of day care kids graduating high school this year!!
Is the cost of gifts to these children (young adults) deductible as a business expense???

Just wondering!

Thanks

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This is a grey area. You could argue that the only reason you are giving gifts is because of your past business relationship. You could also argue that this is good advertising by telling others at the graduation about your business. However, on the other hand, your business relationship was many years ago and attendees at a graduation are not likely customers.

So, unless you have some circumstances in which you can argue the business purpose of your gift, I'd probably take the conservative option and not try to deduct it.

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