Capitalism is rooted in self-interest. No one does anything if there’s not something in it for them, even doing good. That’s why Open Forum offers these five tax breaks for doing good. For example:
Give from inventory
You can make good use of items that may be sitting on your shelves by donating them to a charitable organization.
Tax break: Donations are typically limited to the fair market value of the inventory on the date you donate it, reduced by any gain that would have been realized if you’d sold it (the donation is essentially your cost). But some donations entitle you to an enhanced deduction of 50 percent of the difference between the basis (usually your cost) and the fair market value, but not more than 200 percent of the basis. Enhanced deductions are allowed for:
- Donations by C corporations for the ill, needy or infants
- Donations by C corporations of scientific property used for research and computers for education
- Food (must be wholesome and meet all labeling standards)
- Books given to public schools (grades K-12)
Note: Some of these breaks expired at the end of 2011 but may well be extended retroactively for 2012.
Full story at Open Forum.
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