Tag Archives: tax deductions

Tax Deduction Advice with Anchin Block & Anchin

At the end of 2015, the House and Senate passed the Protecting Americans from Tax Hikes (PATH) Act. As part of this act, the enhanced deduction for donations for food inventory was retroactively extended. This allowed all qualified donations made since January 1, 2015 to be eligible. As Anchin Block & Anchin explains on their website, this deduction allows both individuals and organizations to reduce their tax liability by offering food inventory to charitable organizations; in addition, it has the potential to increase food donations and reduce food waste.

As described on the Anchin Block & Anchin website, the enhanced deducation is equal to the lessor of “The taxpayer’s cost to produce or purchase the inventory plus one-half of the profit that would have been recognized if the inventory had been sold at its fair market value on the date of contribution, or Twice the taxpayer’s cost basis in the contributed inventory.”

In order to take advantage of this deduction, the taxpayer needs to qualify, quantify and document the deduction. As Anchin Block & Anchin describes it, “The use of statistical sampling may be permitted in order to capture and keep record of this type of information, presuming the applicable procedural requirements are followed.”

This information is useful to those in the New York area and around the country who want to take advantage of these tax deductions and opportunities.