| Charitable Contributions / Contributing inventory, research property, or computer technology and equipment to charity |  |
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Did you know that you can contribute
business inventory, research property and computer technology and
equipment to certain charities and get a tax deduction in excess of
the amount you paid for the property? The amount of your deduction for
inventory contributions is the lower of (a) one-half the difference
between your cost of the inventory and its fair market value or (b)
twice your cost. For other qualifying property, the deduction may be
somewhat lower. In order to qualify for this tax break, you must
contribute the property to a particular type of charity, the charity
must use it in a particular way, and the charity must provide you with
certain written documentation. In certain cases, other requirements must
be met as well. There's no dollar limit on how much property you can get a deduction for under these rules, other than the overall corporate limit on charitable contributions (under which any charitable contributions in excess of 10% of taxable income must be carried forward to future tax years). |
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