How Does the Starbucks Gift Cards for

Business Promotion works?

Making gifts to promote your business is complicated. The information below was provided to us from Bradford Tax Institute.




To stay in touch and promote my business, I buy dozens and dozens of Starbucks $5 gift cards and send them monthly to my prospects and referral sources. Can I write off the $5 cards


$25 Limit


You’ve probably heard the expression “between a rock and a hard place.” That’s where your Starbucks gift cards fall. The law is going to treat your $5 Starbucks cards as business gifts.


Thus, if you give a card to a referral source every month, your cost is $60 for the year ($5 x 12), but you may not deduct more than $25 for business gifts made to the same person.


$4 Exception


When you see the $4 exception to the gift rules, you will want to eat nails. The law exempts from the business gift rules and calls it advertising when you give to a customer or a prospect an item.


  • that costs you $4 or less,


  • on which you have your name clearly and permanently imprinted, and


  • that is one of a number of identical items distributed generally by you




Keep in mind that the $4 rule was enacted in 1962, many years before Starbucks came into being. Further, if we applied the consumer price index calculator to that $4 amount, it would inflate to $39 today. The $25 total gift amount inflates to $241.


Complaint Route


You might consider the complaint route. Both the $4 and $25 limits are out of touch and absurd. They need changes to account for inflation and changes in society. People who deserve your complaints include your



  • U.S. senators,


  • U. S. congressional representatives, and


  • trade associations.



June 9, 2022 | DWHuff Consulting

Check out our blog for more content to help achieve financial freedom. As we learn new things we frequently share and discuss.We offer something for everyone through various pod casts, blog posts and emails. To get David's Free Newsletter just Click "Get Newsletter" and enter your email address



DWHuff Consulting

210 W Judge Perez, Chalmette, LA, United States, Louisiana

Facebook - DWHuff Consulting
Youtube - DWHuff Consulting
Instagram - DWHuff Consulting
TikTok - DWHuff Consulting
Google My Business - DWHuff Consulting

© Company