So to complete the response on your question:
1) The above provides some guidance on if you would qualify for the deminimis safe harbor. However, we have no idea of the cost of the equipment or the size of the business. Both of these would come into play.
2) Having said that, you can contribute the asset to a charitable organization. The deduction is the FMV of the asset at the date of contribution LESS any ordinary income recapture. If you elected to deduct the cost under the deminimis rule (if you qualify), then this amount would reduce the charitable deduction, which I would venture to say would leave you with zero. This makes sense, since there would be the potential of a double deduction which the IRS does not allow.
3) You could elect to just contribute the asset, take no depreciation (deminimis), and the value of the contribution would be the FMV of the asset, which I would assume is your cost given the short period of time the asset has been held.
So essentially you have the two options; possibly qualify for the deminimis deduction or donate (and no depreciation or expense deduction).
I assume you are most likely a pass-through entity. It would probably make the most sense to take the deminimis deduction if you qualify as that deduction impacts page 1 of your 1040 which may be favorable to your state tax as well since most states are tied to federal AGI. The charitable contribution deduction would be on Sch A and would be taken after AGI and possibly phased-out depending on your income level.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
