Many companies are not aware of a quick and easy solution to excess inventory problems. If your company wants to save money on taxes and move product overruns, returns or usable seconds, the National Association for the Exchange of Industrial Resources (NAEIR) can help.
By donating new, overstock inventory to NAEIR, regular C corporations may deduct the costs of the goods and half the difference between cost and fair market value. Your deduction could be up to twice cost. S corporations, partnerships and sole proprietorships earn a straight cost deduction. This option is available under the U.S. Internal Revenue Service Code Section 170 (3)(3).
More than 7,000 companies have donated $1.6 billion in inventory since NAEIR’s founding in 1977. All products are redistributed to schools, churches and nonprofit organizations nationwide, so companies can clear warehouse space, receive an above-cost tax deduction and contribute to a worthy cause.
For a step-by-step guide to donating, contact NAEIR at 800-562-0955 or e-mail [email protected].