Business Donation

[bekzm]

Client does weddings. She purchased products or her supplies. We don't use them in inventory cause no on else will use them or likes them. We have set up a lot of the stuff on depreciation when purchased the business like chair covers. Now she has donated them and in return she had her business name posted for the advertising in return. Do I write it off as advertising or am I thinking this is double dipping cause the products have been written off? Or if these items were in her depreciable assets, reduce the basis in the assets.

Too late to think so any suggestion is helpful

Thank you

[ATSMAN]

If the basis is 0, then I would not include that in any advertising expense.

If any property has a basis left, then the advertising expense is the tax basis, after you remove that property from the depreciation schedule.