CONTRIBUTION OF FOOD INVENTORY

Question 1

Calculation of Deduction

Answer 1

• Basis + half the gain that would have resulted had the item been sold, limited to double the basis
• limited to 15% of taxable income

Question 2

What food qualifies for enhanced deduction

Answer 2

Apparently wholesome food generally means the food must meet all federal, state and local quality and labeling laws and regulations, even though it may not be readily marketable due to appearance, age, freshness, grade, size, surplus or other conditions

Question 3

Food Bank used by Kraft

Answer 3

• Chicago Food Bank
• Feeding America