Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
According to publication 463, there's a $25 limit on direct and indirect gifts given to any one person during the tax year
So, even though you are giving $400 you can only deduct $25
Also, you can deduct this under GAAP, but there will be a permanent difference in your book/tax difference as you will be unable to deduct $375
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