alsqr #26. Recently Dick's CEO made a big pose on CBS News about destroying their military style rifles and accessories. Yeah, they stopped selling them months ago. But the CEO made this announcement for the news.
ClickClickD'oh #14. In response to the possibility they might use the destruction as a tax write off, I searched "destroying unsaleable inventory as tax write off" and got:
MKS&H CPAs and Business Consultants
https://mksh.com/obsolete-inventory-book-vs-tax-write-off/
My summary:
If Dick's can no longer
(a) use their inventory in a normal manner, or
(b) sell it at a normal price,
Dick's can take a tax deduction in one of three ways:
1. Sell the inventory to a liquidator or junkyard. Tax deduction = fair market value - the offer received from liquidator or junkyard.
2. Donate the inventory to a charitable cause at no cost to the charity.* Deduction amount varies.
3. Destroy the inventory. Least possible tax deduction of the three options. Plus you must document the destruction to the IRS.
My take: The inventory is not obsolete nor is it unsaleable. The only thing preventing Dick's from using their inventory in a normal manner, or selling it at a normal price, is the Dick's head's decision to destroy a perfectly good inventory of legal firearms and accessories as a political message. I am not a CPA, business consultant, or IRS tax specialist, but I don't think Dick's would qualify for a tax write-off destroying their inventory as a political pose.
I suspect that the CEO's announcement is supposed to generate good vibes with the woke and save Dick's declining business. Like when KMart went on camera in
Bowling For Columbine and discontinued guns and ammo.
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*2. Dick's could donate the military-style firearms and accessories to a gun club operating military matches under the rules of the Civilian Marksmanship Program; that would take the guns off their hands and keep them off the streets.