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Deductions & credits
Actually what you wrote about COGS is wrong. The amount deductible for inventory contributions is the lower of its fair market value on the day you contributed it or its basis and that basis is what you paid for it that would have been included in your beginning inventory. If the cost of the donated inventory isn't included in your beginning inventory because you expensed it you can't claim a deduction....it's basis is zero.
‎September 22, 2020
2:54 PM