@Critter-3 wrote:
Logical or not the current rules are the income is reported on the Sch C and if you can itemize you can deduct the donations on the Sch A. If you want change lobby your federal congress person.
Note that you can only take a tax deduction for donated items if you have a cost basis in the items. Your cost basis is the price you paid. If you get items for free, but you pay income tax on the value of the item, then your cost basis is the value that you paid income tax on. (If you get items for free, and don't pay tax on the value, then your cost basis is zero and you are not allowed any tax deduction in most cases.)
And also, if you do donate items and claim a deduction on schedule A, you can only claim the fair market value at the time of the donation. If you keep items for 6 months before donating, then the fair market value is not the price when new, but is whatever you could sell the item for in its present condition (lightly used, etc.) on eBay, Facebook marketplace, or a similar arrangement.
