Tax Information for Charitable Contributions

Tax Deduction

You can receive a tax deduction worth up to two times the cost of your donation. For regular C corporations, your deduction is equal to the cost of the inventory donated, plus half the difference between the cost and fair market-selling price, not to exceed twice the cost. Please consult with your accountant for tax advice.

Example:
Cost = $10
Selling price = $30
Half the difference = $10
Deduction = $20

Example Tax documents from NAEIR:

Sample Tax Letter from NAEIR – download the pdf

IRS Tax Exemption Status Letter – download the pdf

Links to IRS Tax Information:

Tax Code for 170(e)(3) – download the pdf

How to Claim a Deduction for your Charitable Contributions  http://www.irs.gov/pub/irs-pdf/p526.pdf

Determining the Fair Market Value http://www.irs.gov/pub/irs-pdf/p561.pdf