VERIFICATION OF TAX CREDITS FOR RETAILERS
Poma FreshTM’ will be able to verify tax credits by capturing and documenting the current sales price from daily published internet sale prices, government daily published wholesale prices, and the date, pick-up confirmation and verification of available remaining shelf time.
The documentation of each donation is required to qualify for the tax benefits. The Poma FreshTMserver will crawl the internet every day and archive the published pricing associated with each donation.
- The potential tax benefit for the grocer is the cost of the produce plus half of the indirect costs. The limitation on the indirect costs is up to twice the cost of purchases.
- Indirect costs are handling fees, storage and transportation.
- Indirect fees can be approximated by subtracting profit from sales price, and then using a 50% multiplier.
This is a guideline that assumes profit and indirect fees are approximately the same value. The limitation is the maximum indirect fee allowed before the multiplier is twice the purchase costs of goods.
Our example below is based on a grocer purchasing $1 worth of tomatoes from a vendor and selling them to the consumer for:
|
Sales Price Cost |
Cost |
Indirect |
Profit |
Tax Benefit |
|
3 |
1 |
1 |
1 |
1.50 |
|
3 |
1 |
1.75 |
0.25 |
$1.88 |
|
3.5 |
1 |
2 |
0.5 |
2 |
|
4 |
1 |
2.5 |
0.5 |
2 |
Not 2.25 as half of indirect costs ($1.25) exceeds the limit of twice the purchase costs (2x $1)