Can a business deduct charitable contribution of monthly subscription cost?

Let's suppose a business has a product that companies can subscribe to for $30/month. Can the business take a deduction for donating a subscription to a non-profit organization? (I suppose a web-hosting company would be a great example of the type of situation I'm thinking about.)

It's not a "service" in the sense that the cost is based on the number of hours worked -- yet it's not quite a tangible product the non-profit could hold in its hands.

No.

Here is a more tanglible example. Suppose a store buys widgets for $5 each and sells them for $20 each. One day they donate 5 widgets to charity ($100 worth).

They would get a deduction of only $25.00. The cost of the 5 widgets. The fact that they would normally sell for $100 is irrelevant.

In the same way, if you donate a service, your deduction is the cost to produce that service. In most cases: $0.00.

The can only deduct the actual out of pocket costs related to the donation of the service. It most certainly IS a service in the example given.

Businesses can not deduct the value or selling price of donated in kind services. However, they still can deduct the costs of providing those in kind services as a regular cost of doing business.

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　　Business Consulting 　　Business Solutions 　　Business Applications 　　Business Shopping 　　Business Website 　　Business Hosting 　　Business Software 　　Online Business 　　Internet Business 　　E-Business 　　E-Commerce

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