Potential tax savings are calculated in the Price & Value step during the posting process. The savings are based off information you provide about the product’s fair market value and cost of goods and are only relevant if the product is donated to a verified 501(c)3 charitable organization.
What is fair market value?
Fair market value (FMV) is the price at which comparable items are being sold elsewhere in the market. If you don’t know the FMV, the value will be calculated based on the average wholesale value of one pound of donated product at the national level, which was determined to be $1.70 according to the 2014 Feeding America Product Valuation Study, KPMG, Audited.
What is cost basis?
Cost basis is the cost for producing and/or acquiring food inventory. If cost basis is not provided, the enhanced tax deduction cannot be calculated.
Learn how the enhanced tax deductions for food donations (passed in December 2015) impact you: http://info.foodspoileralert.com/enhanced-tax-deductions-for-food-donations-infographic.
You should consult your tax advisor for support in filing tax deductions.
Read more: How do I post food for donation?