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You can only deduct the cost of the materials and not the value of the item donated.
Usually, the cost of the materials will already be accounted for in your Schedule C in the Cost of Goods section. That is, if you included (and did not separate) the cost of making that item from the material costs for all of the items you made and sold alst year those material costs will be in the purchase and will not be in the ending inventory. In that case, no additional entry is needed to account for the cost of the materials used for the donated property.