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.
Can a business deduct charitable contribution of monthly subscription cost?
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.
Can a business deduct charitable contribution of monthly subscription cost?
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.
Reply: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.