yeah, I have spent so much time reading about this my head is spinning.   been in pub 544 too... 

 I really appreciate all the help you guys have been giving me. 

So if I can't take the FMV and I can only take the 80K of inventory.   How do I reflect this on the 1120S.  

I need to take it out of inventory, which will affect COGS, but need to also show it as a Charitable contribution?  It says below you must remove the amount of your charitable contribution form your opening inventory.   So I adjust my opening inventory down by $80,000 and then list the $80,000 on both screen 20 and screen 25?   Subject to which limitation?   50%?? 

Just wondering.  - what would capital gain property be when they are referring to Charitable contributions?    If the land only was sold it would be subject to a LTCG, then FMV could be used for the contribution?  Just unclear why this argument fails?   and I know my client will not be happy so I want to make sure I can explain correctly.       

From the pub 526 - Capital assets include most items of property you own and use for personal purposes or investment. Examples of capital assets are stocks, bonds, jewelry, coin or stamp collections, and cars or furniture used for personal purposes.
For purposes of figuring your charitable contribution, capital assets also include certain real property and depreciable property used in your trade or business and, generally, held more
than 1 year. You may, however, have to treat this property as partly ordinary income property
and partly capital gain property. See Property used in a trade or business under Ordinary Income Property, earlier.  (Pub 526 -Ordinary Income Property Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed.) Land is not depreciated so it would not be subject to Ordinary income for that if sold separately.  It has been held onto for more than 1 year, so no short term gain.   

again.  Many thanks.