Gifted materials and equipment, can the business owner deduct these?

[Charlie_19]

Hi all,

So I purchased and gifted equipment and raw materials to a friend's LLC to help

start her candle making business. Can she put these down as assets and claim deductions?

Thank you all for your time and help.

[tagteam · Accepted solution]

Yes, but she has to use the lesser of your basis (most likely what you paid) or the fair market value at the time of the gift.

[Charlie_19]

Thank you for the prompt response! appreciate it.