But if I buy a locker as inventory for my store and donate the items that sit for a while, would I not be able to write off FMV? Seems to me, that would be the most logical..

If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its fair market value on the day you contributed it OR its basis (http://www.irs.gov/pub/irs-pdf/p551.pdf) . The basis of contributed inventory is any cost incur­ red for the inventory in an earlier year that you would otherwise include in your opening inven­ tory for the year of the contribution. You must remove the amount of your charitable contribu­ tion deduction from your opening inventory. It is not part of the cost of goods sold.
If the cost of donated inventory is not inclu­ ded in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Treat the inventory's cost as you would ordinarily treat it under your method of accounting. For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year.


http://www.irs.gov/pub/irs-pdf/p526.pdf




The way I read the law, and I'm not a tax lawyer or CPA, I'd say no.
I can't go to the east coast and buy a 100 Amish chairs that are common there for $1/ea, bring them here where they sell for $10  then donate them and say there is $1000 donation.  Take $150 (15% bracket) off my taxes.    The government isn't there to buy your sh*t that doesn't sell....

Here is some related info......because a lot of it comes down to how much you donate:
http://www.hrblock.com/free-tax-tips-calculators/tax-help-articles/Estates,-Trusts,-and-Gifts/Charitable-Donations.html?action=ga&aid=27166&out=vm

It may have been the least productive year for Congress in history, at least in terms of passing laws – fewer than 60 of which made it through the House and Senate and were signed by President Barack Obama.

Across the country, however, state lawmakers were busy getting more than 40,000 bills passed, ones that tackle everything from drones to food stamp benefits.

In Illinois for example, teenagers will no longer get to use tanning beds without a doctor's note. If you live in Delaware, visit the shark fin buffet while you can, a new law will make it illegal to own, sale, or distribute the controversial delicacy. And in California, new laws take effect that will let students take part in school sports, or use bathrooms based on their gender identity, regardless of the gender noted in their birth

California:
http://www.sanluisobispo.com/2014/01/01/2857554/californias-new-laws-what-changes.html

Washington marijuana retail stores are legal, tho won't be up-n-running till like June. The word "riot" was taken off the books.  Some counties 2x DUI's require bracelet to be worn that measures alcohol content.....

What good/bogus laws are in your state as of today?

Your correct.   You have to pick the "credit card" that is actually considered a gift card or better the pre-paid debit.  The best being the ones with a PIN number.

Some grocery stores still won't let you fill it with a credit card and some credit card companies won't accept payment from them.  Some grocery stores won't even let me buy them or money orders with a DEBIT card, cash only. 

Ill have to look at what it is.   I know it's not just the average visa ones. 

Another tricky way I've heard of is buy online with paypal but link to credit card.  So it thinks your buying with paypal but then paypal charges card.  But then you get 1-3%, not 5%.
I've never done it these way so not really sure how it works or how cost effective it is.

I didn't buy his unit. There was however a gallon jug visible that was not full of water. This unit had literally 400 plus hotwheels all opened and played with. What do you guys do with them?

I have a guy that deals in hot wheels.....
If you can't find a hot wheels dealer its a long, long night of research for you!
Google each one.  Personally, I'd do a cursory look thru. Pick ones that look good, old....
 Or google 'sought after' or 'rare' or something like that then scan your pile. 

After that, ebay as a lot.

Joshua: Greetings, Professor Falken.
Stephen Falken: Hello, Joshua.
Joshua: A strange game. The only winning move is not to play. How about a nice game of chess?


Stephen Falken: Now, children, come on over here. I'm going to tell you a bedtime story. Are you sitting comfortably? Then I'll begin. Once upon a time, there lived a magnificent race of animals that dominated the world through age after age. They ran, they swam, and they fought and they flew, until suddenly, quite recently, they disappeared. Nature just gave up and started again. We weren't even apes then. We were just these smart little rodents hiding in the rocks. And when we go, nature will start over. With the bees, probably. Nature knows when to give up, David.

I'm not much into music so I have a hard time remembering it all.
I tried for a bit but never made out.  I know a guy that does and he makes some money but his house is literally stacked floor to ceiling with records.  He goes to estates and what not and buys all sight unseen for cheap then digs thru.....

Me? I bought a stack for $1 each because I "knew" they went for $5-&$25 each.
They were the right artist, songs, date, label.....oh....but they were pressed in the USA, not England....so turned out to be worthless.   

After that I decided I'll stick to what I know.

And you could only deduct what you paid for it.....not what you have it marked at even if you have it marked at FMV.   

Basically, let's say I find an item at value village mismarked for $1 but it's selling on ebay for $100.
I can only donate and deduct $1, not $100, because that's what I paid for it.
Same applies to storage units.

You'd need to talk to a tax attorney.  Since you own a shop and have already deducted the cost of the unit as a business expense it gets even more tricky.

Search the threads. We had it all broken down last tax season.