turbotax icon
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Writing off a giveaway

Hi there,


I own a children's consignment store and I am wanting to do a giveaway of a paddle board. Can this be a write off? And if yes, how do I go about claiming it on my taxes?


Thank you!

1 Reply

Writing off a giveaway

There are no tax deductions for giving away inventory.  You deduct the cost of acquiring the inventory in the usual way.  Because you don't sell the item, you have less sales income, so you pay less tax.   That's your tax "deduction".  


Alternatively, you are allowed to report the item as a tax deductible donation, but only if you also report the full value in your taxable sales income, as if you had sold it.  However, if you are a schedule C "disregarded entity", you report business income on schedule C and pay income tax and self-employment tax, and you deduct charitable donations as itemized deductions on schedule A, which have some limitations.  Meaning the tax benefit of the donation will be less than the extra tax you pay on the income you must report.  So it's not really worth doing this way although it is technically allowed.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies