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so bottom line gift cards are deductible but it isnt as straightforward as keeping just the receipt so what do you need to do to earn your gift card deductions well just like everything else with cla you gotta earn your deduction number one as a minimum you need to keep your receipts thats the bottom line no receipt no deduction number two cia allows business owners and real estate investors to deduct all expenses incurred for the purpose of earning the property income or business income but the key though is to be able to establish the link between incurring the expense and earning the income if i send a gift card to my tenant as a thank you to take care of my property its very easy to establish that cause and effect relationship i incur the expense i earn the income