Tax Facts

Information to help individuals and small business navigate our complex Tax Laws. Not to be construed as tax advice. Contact your hired tax advisor for your specific tax situation and advice.

Small Business Inventory and Charity

What if you have a small business such as a sole proprietorship that files on Schedule C and you want to contribute some of your inventory to charity? How should you account for that? There are some things to consider regarding charitable contributions of inventory before you do so.

First, consider that unfortunately, charitable contributions of any kind cannot be deducted on Schedule C. They are deducted on Schedule A of your personal tax return as itemized deductions. Obviously, you should consider whether or not you even itemize your deductions or take the standard. And with the new tax legislation that is going into effect for 2018, you may have itemized in the past but will not in the new year.

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