Corporate Tax Information

 

Charitatable tax deduction

 Section 170(e)(3) of the Internal Revenue Code allows corporations an additional tax deduction when they donate their inventory to 501(c)(3) humanitarian relief organizations such as Matthew 25: Ministries.

The total deduction equals the donor corporation's cost of the inventory as shown in their accounting records plus one-half the difference between fair market value of the donated inventory and the donor corporation's cost. The total deduction cannot exceed twice the cost of the inventory items.

Donor's cost + 0.5(market value - donor's cost) = Total Deduction

 

Other Conditions

The donor corporation can only claim this additional deduction for inventory items, not for capital items such as equipment. Also, the donor corporation cannot have already written the items completely off of their books.

The donor corporation must obtain a statement from the charity that the use of the donated property meets the requirements of Section 170(e)(3). Matthew 25: Ministries furnishes the required documentation to the donor corporation.

Feel free to contact Matthew 25: Ministries with to discuss how this additional tax deduction might help your corporation.

 

Improve Control of Your Excess Inventory

You can claim these important tax deductions and manage your excess inventory while helping with Matthew 25: Ministries' worldwide relief efforts. We handle all processing, documentation, and distribution.

Contact Don Olson (don@m25m.org) for additional information.