Can Jackson claim a deduction for gifts given to his supervisor and spouse?

In the context of tax deductions for gifts, the IRS has specific guidelines regarding what can be deducted. Gifts to individuals, including a supervisor and spouse, are not considered deductible expenses for federal income tax purposes. The tax code generally does not allow deductions for personal gifts, regardless of the amount, which includes gifts made to a supervisor or a spouse.

For gifts to be deductible, they must typically relate to a business purpose, like advertising or promoting goodwill in business relationships, and even then, there are strict criteria. Additionally, gifts that exceed a certain threshold also come with limitations. However, personal gifts do not fall into these categories, and therefore, Jackson cannot claim any deduction for gifts given to his supervisor and spouse.

Understanding this rule reinforces the broader principle that personal expenses are not usually deductible, aligning with the IRS guidelines aimed at keeping tax deductions tied to business or trade activities.