Daniel
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The sale would probably get you the better write off. If the cost was $20K, then the loss would be $19,500.
BTW, you won't get a $20K donation if the market value (amount you can sell it for) is only $500. |
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TaxGuru
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Two important questions: What is your cost in the inventory -- i.e. is the $20k cost or market value? And what do you expect your income to be this year?
Finally -- how badly do you need the cash? |
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holyanswer
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charity!!! you get a tax receipt for probably around 33% (depending where u live) |
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JennyJ
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Either which way you will be making someone very happy. I have nothing against charities, but I would say selling for $500 and giving somebody else an opportunity to create a business, which will be better for our economy and then maybe someday we would need less charities. Questions though. Why would you sell so cheap? Are you asking about donating $20,000 in merchandise for $500? |
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River Walker
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It all depends on you.
Are you money hungry or feel the need to donate.
What kind of business? Is there another business like that around that could use the stuff but cannot afford it.
You know it will come back to you 10 fold! |
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laura468
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that would really depend on your income level if it is VERY low than the 500 may actually help you but as a general rule the charitable contribution would be more tax advantageous |
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extra_37
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Depends on your form of business. If you were a C Corporation, then sell and get some cash. The donation won't help you at all. If you are a S corp, partnership or sole proprietor, donate the inventory and it will "pass-thru" to your personal return, which then can be deducted on Schedule A of your 1040. |
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teena9
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The charitable contribution will get you a bigger tax rebate in the end. |
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sweetdawn710
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Bigger tax break for donating to charity |
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^v^OH! BATS^v^
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Sell it for $500 and get an immediate wet massage. |
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Badkitty
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Sell for $500 then you can claim as a tax write off. |
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Belle
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I'd donate the $20,000 of inventory. You don't have to donate it all to one place. You can choose to disperse it over 2 or more. In the long run, you'll feel good about your contribution. It's also a bigger tax write off than one single sale. |
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misslady792003
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Donate it. The charity will be able to help a lot of people with $20,000 worth of something. |
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Shorti
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Well its up to you $500 isn't all that much ?? and $20,000 could make a difference to alot of peoples lives that are underprivelaged or ill.
I am sorry that your buisness was not succesful no one would think any less of you for keeping the money, the fact that you would even consider charity under your circumstances makes you pretty remarkable!!
However coming from a finance background you could take that $500 and invest it in a long term investment account such as one that follows the stock market, long term potential growth for your future ! You could see a real profit if you invest your money wisely.
Choice is yours noone can make it for you |
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