You may deduct the fair market value for the inventory from your taxes following the donation. Inventory receipts signed by the charity and your business will document the transaction. The IRS offers additional tax breaks if the donated inventory is used directly to care for the ill, the needy or infants.
Can I write off expired inventory?
Can I write off expired inventory? Expired inventory can be written off as if it were lost or damaged because it has lost its market value and can no longer be used for its normal intended purposes.
Can you sell obsolete inventory?
Totally obsolete inventory can often be sold for the materials it contains, metal or cloth, for example. Scrap dealers will come and get it, and if it has any value, they’ll pay a small fee. In the worst cases, you will have to pay to dispose of it.