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Gifted materials and equipment, can the business owner deduct these?

Hi all,

So I purchased and gifted equipment and raw materials to a friend's LLC to help

start her candle making business. Can she put these down as assets and claim deductions?

Thank you all for your time and help.

Best answer by Anonymous_

Yes, but she has to use the lesser of your basis (most likely what you paid) or the fair market value at the time of the gift.

Employee

Yes, but she has to use the lesser of your basis (most likely what you paid) or the fair market value at the time of the gift.

Thank you for the prompt response! appreciate it.

1 reply