A friend asked me about the $25 IRS tax deduction limit for closing gifts.

Is it sufficient to drop a business card into a gift basket to classify it as advertising? If not, would engraving a logo into a nice cutting board quality as advertising? What are some of the more common closing gifts?

My accountant agrees with you. Add a business card to a gift and it is classified as advertiding which has no limit.

IMO, your accountant is being extremely lenient regarding the IRS gifting rules.

A company I used to work for limited gifts to what you could fit in your stomach. Have a monthly new home owners dinner that all your buyers are invited to at a nice place.
Some of those fit in the stomach outings were expensive. Had a coworker offer the tip for the group at a Smith and Wolinski's outing with a vendor in NYC. There was food, alcohol and cigars. When asked how much he should tip guy buying told him between $750-$1000. Last time he offered that.