@Plant Man wrote:
There are a few months of labor on top of the soil, pot, and seed that are clamed as expenses from the spring planting. I expense as I go.
So, there is a large difference between the market value that it is being used as, and the materials cost to create. This would not be considered a donation apart from expensed materials?
You have nothing to deduct, unless you report a sale, then you can deduct the selling price (which would be a wash). You already deducted the cost of inventory and supplies, so your cost basis is zero. The cost of labor is never a deductible charitable expense, and you already deducted the labor as a business expense anyway. Your tax "reduction" comes from the fact that you have deducted expenses, but have no offsetting revenue, so you have lower taxable income.
See the section on Inventory in publication 526.
https://www.irs.gov/pub/irs-pdf/p526.pdf
