[happy14027]

"Businesses that donate inventory (which is what a LCS would be) don't get to deduct the full value of the donation - they only get to deduct their cost as a charitable deduction. Depending on the type of entity they are formed as, there may be additional limitations (eg - C Corps only get to take charitable deductions up to 10% of their net income)"

I mean only the best here-I learned something new today- I always thought they got what individuals got-your statement make absolute sense from a business and IRS standpoint-Thanks PS--Hope you didn't get a headache from all that spinning! Just kidding....

[ceocards]

"Businesses that donate inventory (which is what a LCS would be) don't get to deduct the full value of the donation - they only get to deduct their cost as a charitable deduction. Depending on the type of entity they are formed as, there may be additional limitations (eg - C Corps only get to take charitable deductions up to 10% of their net income)"

I mean only the best here-I learned something new today- I always thought they got what individuals got-your statement make absolute sense from a business and IRS standpoint-Thanks PS--Hope you didn't get a headache from all that spinning! Just kidding....

LOL no prob - and I didn't mean to offend either. Taxes are just one of those things where misinformation spreads like wildfire. Someone "hears" something from a "friend", and then they tell someone who tells someone who posts it on facebook and someone sees it forwards it to everyone they know, and suddenly I have an upset client when I tell them they can't claim an exemption for Fido.

In case anyone is a legal nerd like me, the general rule is you determine what sort of income you would recognize if you sold it. If it's ordinary income (like selling inventory) then you get a charitable deduction = cost. If you'd recognize a capital gain if you sold it (like investments) then you get a charitable deduction = fair market value.