Damaged goods
$25–$5,000
Can You Write Off Damaged goods?
Short answer: Damaged goods — Handling customer returns.
Damaged goods may be deductible when purchased for ordinary and necessary use in your wholesale / distribution business. Documentation of business purpose is usually required.
BW-BUY-01852
low risk
Damaged goods
Typical range: $25–$5,000
Wholesale / Distribution
Other Expenses
Returns Processing
Damaged goods — Handling customer returns.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Damaged goods may be deductible when purchased for ordinary and necessary use in your wholesale / distribution business. Documentation of business purpose is usually required.
Write-off library
Returns Processing
Handling customer returns.
Documentation to keep
- Receipts, invoices, or bank/credit card statements
- Written business purpose and date of expense
- Logs or apps tracking business use when mixed personal/business use applies
returns processing
wholesale distribution
damaged goods