DH Templates

Are turnkey website templates donated to churches tax deductible?

If I sell website templates on my website for $250 each, but give one away to a local church, is that $500 template tax deductible? I mean, is that $250 template donation tax deductible? (The listed prices are different)

Public Comments

1. No. You can deduct only what it cost you (if anything). If you made it, or got it free, you cannot deduct anything (except trivial amounts for electricity, etc., if you can document how much you used). You cannot, under any circumstances, deduct an amount merely because that is the amount for which you sell it. (Theoretically, it is possible that the amount you could deduct for other reasons might be equal, by coincidence, but this is extremely unlikely.)
2. No, you cannot deduct the retail value. Your deduction is limited to the lesser of your out-of-pocket cost in generating the templates or their fair market value at the time of the donation.