Re:Uber is destroying thousands of electric bikes and scoote...
by AnthonyMouse on Friday May 29, 2020 @11:52AM
(#23351452)
> That's because according to the tax code, businesses can claim depreciation of all capital property.
Food isn't "capital property" in general, so it's a different deduction, but in the end it comes out much the same. Which is what I said. The price they paid for it is already a deduction, so there is generally no further deduction from donating it vs. throwing it away and writing it off.
> This is even easier for businesses, since for things like bikes that strictly decrease in value, the donation value is probably just the purchased price - accrued depreciation (which itself was modeled using methods similar to FMV).
But that's the problem. They buy something, use it (or intend to use it but don't), and then throw it away. One way or another that allows them to write off the entire cost.
Which means there isn't any additional deduction available for donating it to a charity instead of wasting it at the end, so there is nothing there to offset their cost/risk of making a donation instead of throwing it in a dumpster, and that causes tons more stuff to end up in the dumpster.
Food isn't "capital property" in general, so it's a different deduction, but in the end it comes out much the same. Which is what I said. The price they paid for it is already a deduction, so there is generally no further deduction from donating it vs. throwing it away and writing it off.
> This is even easier for businesses, since for things like bikes that strictly decrease in value, the donation value is probably just the purchased price - accrued depreciation (which itself was modeled using methods similar to FMV).
But that's the problem. They buy something, use it (or intend to use it but don't), and then throw it away. One way or another that allows them to write off the entire cost.
Which means there isn't any additional deduction available for donating it to a charity instead of wasting it at the end, so there is nothing there to offset their cost/risk of making a donation instead of throwing it in a dumpster, and that causes tons more stuff to end up in the dumpster.