Question

Can unsold inventory be written off as a donation?

Forum|Forum|5 years ago
April 12, 2021
1 reply
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I am closing a business soon and would like to know if I can donate my unsold inventory to Goodwill for a tax write off (possibly by withdrawing inventory for personal use?). I operate as a sole proprietorship. The inventory was claimed as such on my 2020 tax return.
If I cannot donate it, is my only other option destroying it?

Not A Product Question

P

PattiF

Yes, you can donate the items and take the lower of cost of the goods or FMV, fair market value, as a charitable deduction on your Schedule A, Itemized Deductions.

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