Unusable inventory in a jewelery business

[GTS1101]

I have a client who has an inventory valued at approx 12,000 of raw material to make jewelery. It is not finished goods but material to make jewelery. It is unusable and they cannot sell it or give it away. They will not use for personal use. The business is now closed and the material is just going to sit in storage. Can they write it off as a business loss as the business closed in 2007?

Thanks!

GTS1101

[Possi]

Cogs

Didn't they expense the materials when they purchased them, as cost of goods sold?

I believe it is a "natural loss" when they expense the purchases and have little or no income against it.