APRIL 1998Manufacturers' deduction
Manufacturers can earn a federal income tax deduction by donating excess, non-moving inventory to a qualified charity.
Regular (C) corporations may deduct the cost of the inventory donated, plus half the difference between cost and fair-market value. Deductions may be up to twice the cost. S corporations, partnerships and sole proprietorships earn a straight cost deduction.
Contact the National Association for the Exchange of Industrial Resources at 800/562-0955 for a free guide with instructions and help calculating potential savings.
April 16, 1998