advantagepoints
Level 3

Thank you so much for your request. At the moment, I am continuing to do additional research for the guidance regarding the following information previously shared.

"While generally only C corporations may claim a deduction for charitable contributions of nonfood inventory items, any form of entity is entitled to the charitable deduction for contributing food (Sec. 170(e)(3)(C)(i)(I))"

and...

"Federal law protects businesses that donate apparently wholesome food from liability to encourage businesses to donate food before it becomes waste. Further, tax law establishes special rules for food donations, which can give businesses a larger write-off than otherwise available for inventory donations. Under the special rules for donated food, businesses can deduct what they paid for the food plus up to half of the markup they could have charged. For example, if the ingredients cost $10 and the final dish would sell for $30, the donation would provide $10 in write-offs from the cost and another $10 in write-offs from half the markup of $20."

I will bring up the issue with the E.A. group that I meet up monthly. Will return to provide updates.

0 Cheers