Originally Posted by
dunster
hmmm... profit that is not made is not tax deductible.
The way our CPA explained it, any company who provides us a service or item, either at cost or free of charge, can claim the retail amount as a 'donation' or charitable giving. So while a bolt of Moda may wholesale for $4 a yard my LQS retails it for $10.25 so they would get a charitable giving tax deduction for $102.50 assuming they gave it to me free of charge. If I paid the whole say cost for it they would get a $62.50 deduction.