I am in IT consulting, to maintain relationship, I give out gift cards to my potential clients, how can I deduct this as business expense

[twang090]

My friend told me to put it in the 'entertainment and meals' category for 50% deduction, is this correct?

[TurboTaxJeffrey · Accepted solution]

I  am assuming you are self employed.

That being said, you would claim the gift cards as advertising and promotion.  You get to claim 100% rather than only half.

[hannamlisa]

Is this still relevant for 2016 returns?

[TurboTaxJeffrey]

Yes.