While it is unfortunate restaurants and businesses are closing due to the pandemic, you can still do a little good by donating your restaurant equipment and furniture. If you’re closing a restaurant or updating your equipment, consider donating the used restaurant supplies to a nonprofit organization, like Giving Center. While it may not be common to donate restaurant equipment, Giving Center can put your donation to good use! Consider a soup kitchen or other facility that serves the underprivileged. Charities that provide housing or food to poor populations can put the equipment to use. If Giving Center can’t utilize the equipment, we can still sell it for the profit and leave you with a nice tax write-off. With the pandemic causing many businesses and restaurants to shut down, consider donating your equipment today!
To receive a tax deduction, you must donate the equipment to an eligible nonprofit organization. To qualify, the nonprofit must be registered with the Internal Revenue Service, usually as a 501(c)(3) organization. Giving Center is an IRS approved, 501(c)3 nonprofit organization that operates across the United States. You cannot take the deduction for giving the equipment to an individual or nonregistered group. Giving Center focuses on supporting not only individuals, families, students, and veterans, but also local community foundations and groups that serve war veterans, children and other populations.
To take the deduction, your donation must be freely given. You cannot receive anything in return, such as tickets to a banquet or sporting event. The organization should provide you with an acknowledgement that you didn’t receive anything in return for your gift if its value is over $250. If the restaurant equipment is valued at more than $5,000, you must first get a qualified appraisal of the items and attach the appraisal to your tax return when you file.\
When you file your taxes, you’ll need to determine the fair market value of the equipment if it’s less than $5,000 and you don’t have an appraisal of the equipment. The fair market value is the price you could get for the equipment if you sold it on the open market. Check with used restaurant equipment supply houses to find out what the going rate is for the year and model of the equipment you are donating. There are no set rules for determining the value of the equipment, but the IRS expects you to take every precaution to fairly value the equipment.
In addition to the value of the equipment, you may be able to deduct the expenses you incurred in getting the equipment to the organization. Transportation costs and costs associated with hooking up the equipment may be deducted to reduce your tax burden. Individuals are limited to deductions equaling 50 percent or less of their adjusted gross income. Businesses cannot put restrictions on the use of the equipment when using the gift as a tax deduction.
If you would like to donate restaurant equipment please contact us at (888)228-7320 or visit our website: http://www.givingcenter.org for more information. We have live representatives who will be more than happy to assist you with your donation needs and any questions you may have!