“Am I able to purchase gift cards such as Outback steak house and wal mart to give to my customers?”--> Yes you can; gift cards have become increasingly popular as they relieve the donor of selecting a specific gift.
“If so is there a limit to how much in dollars I am limited to?:---> Yes.There is; In general, you can deduct $25 per year per customer for as many customers as you give gifts.
“Is this a deductable expense if I am able to do this?”--->It depends; as long as you give gifts to your business customers as a part of your business, you may be able to deduct part or all of the cost; I guess you may deduct up to $25 in business gifts for each person you give to. This means that if you give a gift that exceeds $25, you can only deduct $25 total. If you give multiple gifts that add up to under $25, you can deduct the total cost. Also remember: you should determine if your gift meets the entertainment exception. Tickets to concerts or sporting events, for example, can be considered either a gift or an entertainment expense. In the case of entertainment expenses, they usually are not restricted by the $25 rule as said abovre , but only 50 percent of the total cost is deductible.For example, say, you give a $100 worth of concert ticket to your customer, then you can deduct up to $50, 50% of the value, $100 of the ticket NOT under $25.