I'm closing my online reselling business. I want to donate all my unsold inventory. How do I count this on my taxes?

deblv838 — Tue, 24 Feb 2026 08:07:29 GMT

Re: I'm closing my online reselling business. I want to donate all my unsold inventory. How do I count this on my taxes?

Mike9241 — Fri, 10 Nov 2023 17:29:39 GMT

If you're a sole proprietor/single member LLC and want a tax write-off for giving to charity, you must take it as a person, not a business deduction. You have to take an itemized deduction on 1040 Schedule A. If you don't itemize your deductions, you don't get a write-off, no matter how generous you are.

if you don't account for inventory on schedule C - ie you expense your inventory you get no further tax deduction because your tax basis is zero.

if you account for inventory, you report using the cost of goods sold section on schedule C, you use the lower of cost or Fair Market value on the date withdrawn to indicate on line 36 of schedule the amount that was remove for personal purposes. That's your tax basis. when you contribute it to charity you get the smaller of your tax basis or Fair market value on the date of contribution. you should get a receipt from the charity. if the value is over $5000 you need a certified appraisal.

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I'm closing my online reselling business. I want to donate all my unsold inventory. How do I count this on my taxes?

Re: I'm closing my online reselling business. I want to donate all my unsold inventory. How do I count this on my taxes?