Armelio operates a business that acts as a sales representative for a client that produces and sells precious metals to electronics manufacturers.

Armelio contacts manufacturers and convinces them to sign contracts for the delivery of metals, and his company earns a commission on the sales.

This year, Armelio contacted a jeweler to engrave small lapel buttons for his client’s employees. Armelio paid $20 each for the lapel buttons, and the jeweler charged Armelio an additional $7 for engraving. Can Armelio deduct the cost of the lapel buttons as business gifts? (Hint: See §274

(b) and Reg. §1.274-3.)