Discounted merchandise donation

by April
(Martinsville, VA)

A local company allowed us to purchase carpet padding at a discounted price and now wants us to provide a tax deduction receipt for the difference b/w the retail price and what he charged. Can we do that?

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Comments for Discounted merchandise donation

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Oct 09, 2010
 In my opinion...
by: Kathy

In my opinion,I don't believe you can give him any receipt because he actually didn't give the church anything. True there was a discount, however a discount is not a donation. Now if he had given the whole thing and not charged you anything, then you could give him a gift-in-kind receipt.
He should be able to declare the discount through his business receipts. That should show on the receipt when it was paid. If he didn't do his paperwork correctly that is not the church's fault. If the church had paid full price and he had written a check as a donation, he could get a receipt from the church.
Oct 10, 2010
 Church Receipts
by: vickey

Kathy is right. You cannot give a church receipt for a discount.
If he would have donated the carpet, you could have given him a noncash receipt...but not for a discount.

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