If you are an active, self-employed farmer using cash basis accounting, there can be significant tax benefits from giving grain instead of cash or check donation.
All Gifts of Grain to WSU are welcome. Here’s how it works:
- If you are NOT an active, self-employed farmer, your gift will be receipted and you may take a charitable deduction.
- If you ARE an active, self-employed farmer using cash basis accounting, you may realize a greater benefit than provided by a charitable tax deduction by:
- Gifting grain from unsold inventory produced in the preceding year. This way you can deduct all production costs while avoiding federal income tax and self-employment tax on the fair market value of your gift.
- To maximize the tax benefits, have the local grain elevator make the receipt out to the WSU Foundation and let the Foundation know what area at WSU you would like to benefit.
The WSU Foundation must be the seller of the gifted crop.
To learn more about the process, please visit: http://cahnrs.wsu.edu/alumni/giftsofgrain/