Turn This Year’s Excess Inventory into Next Year’s Tax Deduction While Doing Good
If you’re like many retailers or manufacturers of paint and coating materials, one of your greatest ongoing challenges is disposing of excess inventory. That unwanted stock takes up valuable shelf space that belongs to more profitable merchandise. From time to time, when you’ve reached your limit, you discount or liquidate those overstocks. It’s not an ideal solution, but what other option do you have?
It turns out that you have a much better option: product philanthropy. There is a generous tax benefit aimed at C Corporations that donate goods to charity. Unfortunately, many retailers have never even heard of this particular section of the tax code.