Your company's excess, slow-selling inventory can become a tax-advantaged deduction when you donate it to a qualified charity. This type of philanthropy is called gifts-in-kind and favors companies that contribute new, unused products.Regular (C) corporations may deduct the cost of the inventory donated, plus half the difference between cost and fair market value (your selling price). Your deduction may be up to twice your cost. S corporations, partnerships and sole partnerships earn a straight cost deduction (see Section 170 (e) (3) of the U.S. International Revenue Code).
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