Did You Know?

If your business has been affected by the slowing of the economy, there may be a solution to your excess inventory woes. Nonmoving goods can be cleared by donating them to charity, and your business may garner a federal income tax deduction in return. According to the National Association for the Exchange of Industrial Resources (NAEIR), Section 170 (e)(3) of the U.S. Internal Revenue Code allows regular corporations to deduct the cost of inventory donations, plus half of the difference between cost and fair market value. These deductions may amount to up to twice the cost. Partnerships, sole proprietorships, and S corporations can earn a straight cost deduction. For a detailed guide to the donation process, contact NAEIR at www.naeir.org or (800) 562-0955. Sounds to us like a great opportunity to do good while doing well. After all, what looks to you like last season's wares will look like a bundle of charming new gifts to any number of deserving charities.