If I build something (like furniture), and donate it, do I deduct the wholesale or retail price on my taxes?
Answer:
I would say the retail cost as you are losing the opportunity of selling it to someone else at that price.
you would deduct the "resale" value-what is the value at the time of the donation! for $20 you can get a software program through quiken that lists the resale prices of many items. (turbo tax)
or you can go down to a pawn shop or goodwill shop and check out similar items-but it's a good idea to keep pictures, and proof of worth
Wholesale.
Sorry - I owned a business (restaurant), and the only cost I could deduct on my donations was the price I paid for the materials. I couldn't even deduct the labor of my employees, much less the standard markup for retail or to cover fixed expenses.
You can only deduct the lesser of the cost of the raw materials or the actual cash value of the item at the time of the donation. You can NOT deduct the "value" of your labor.
The retail price as long as it is the same as the fair market value.
you can only deduct whatever the fair market value of the item is, the day that you donate it. you can go to this site and it will help you figure that out: http://www.kiplinger.com/personalfinance.
Only what you spent for materials is deductible
Neither.
You deduct the cost of materials to build it.
The item was never in store merchandise where a bill for purchase was recorded by the store owner.
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