Partnership deduction - contributions

[JON]

LLC-filing a 1065-husband and wife have listed the following deductions with backiup from the 501(c)(3) sources. How to value-stone contstruction is the business

1. business truck $1600- book value $0
2. inventory items - value from donee $2,760
3. small tools- " " " $ 600

Let me know

[Bees Knees]

From the sample version of Tab 4 in TheTaxBook, page 4-2 under the Charitable Contributions fast answers, inventory and depreciation recapture are both ordinary income property which means you deduct basis, not FMV.

So if you donate a truck worth $1600 with a book value of $0, your charitable deduction is zero. If you donate inventory valued at $2,760, you deduct the cost of that inventory. And if you donate small tools worth $600, you deduct the basis in those tools, which is probably zero.

You would be better off selling all of the above items and donating the cash to the charity.