We provide a detailed list of how the goods were returned, what needs to be done, and the cost to refurbish, as well as a liquidation price.Plan B Distribution only charges a small, negotiable handling fee for these services.We work with wholesalers, retailers, manufacturers, liquidators, distributors, importers, freight warehouses, and bankers.

liquidating excess inventory-77

Since you're donating the inventory, you're "selling" it for $0.

We've assumed a tax rate of 25% in this case study.

Also, there's no immediate boost to your bottom line since the tax benefit is not realized until the end of the tax season.

Compare the donation example to an alternative: selling that $60 shoe to a liquidator.

While it's a common last ditch effort to cut losses on stale products, is it a savvy financial move? Say there's an old shoe in your warehouse or back room you purchased for $60.

Learn more and use our free tool to calculate the impact of this strategy on your business. Here is what it's not: So, we've determined that tax write-offs do make a financial impact. The total tax benefit is determined by multiplying the tax rate (X%) by the cost of goods donated ().

We are experienced buyers of closeout and liquidated merchandise,interested in a wide variety of product.

We buy general consumer merchandise in many categories including toys, gifts, novelties, home goods, ad specialties, promotional products, mail order items, electronics and more.

Of course, tax rates vary, so you can insert your own in the attached Excel calculator.

If you donate the shoe, the IRS will allow you to claim a tax benefit at the end of the tax year. Rather, you have less income to report, and therefore fewer taxes to pay on your smaller gross profit.

Plan B Distribution specializes in buying excess inventory, closeouts, and overstocks from companies and moving them into secondary channels which do not interfere with our customers' primary sales channels.