164511
You'll need to sign in or create an account to connect with an expert.
To reduce your inventory for the donation, indicate
that the donated inventory was "removed for personal use". Then you can indicate your "personal donation" under the Deductions
and Credits tab in the Charitable Donations section. See the info below on how to value your donation.
IRS Pub 334 Donation of inventory.
If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. You must remove the amount of your contribution deduction from your opening inventory. It is not part of the cost of goods sold.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
bobjohnson25
New Member
av8rhb
New Member
Raph
Community Manager
in Events
les_matheson
Level 2
crevitch
Level 2