IF A SUB-S CORPORATION PURCHASE $3500 IN INVENTORY ITEMS, THEN DONATE ALL OF THE INVENTORY TO CHURCH. DO YOU REPORT THE PURCHASE AS COST OF GOODS, THEN SHOW 0 AS ENDING INVENTORY?WHAT ABOUT THE REQUIREMENT TO REPORT DONATION ON K-1?
Purchased specifically for the charity? Book the purchase as a charitable contribution.
THE ITEMS WERE PURCHASED FOR RESALE, HOWEVER, THE BUSINESS CLOSED BEFORE SELLING THE ITEMS AND TAXPAYER DONATED INVENTORY.
Inventory has already been deducted when purchased. It cannot be deducted again as a charitable donation.
