How to Estimate Donation Values for Taxes

Assess the value of your donated furniture fairly.

Donating your unneeded goods to charity is rewarding on a personal level, but it can be rewarding financially as well. When you donate your old clothes, furniture and other household goods to your favorite charity, you may be able to take a tax deduction for the value of the items. This can lower your taxes and help you give even more.

Instructions

1. Ask the director of the charity you are donating the items to for an estimate of their value. Charities aren't always able to perform this service. However, if you make an appointment with the manager, you may be able to get a value estimate or at least an itemized receipt of your donations.

2. Visit the thrift shops run by the organizations you are donating the items to. Goodwill, the Salvation Army and other major charities sell the donated clothing, furniture and household items they receive at their retail stores, and you can get a good idea how much your items are worth by seeing what similar items are selling for at those outlets.

3. Get a professional appraisal if you are donating items of exceptional value, or items that are not routinely bought and sold on the open market. These items can include fine arts, antiques, collectibles, oil paintings and designer jewelry. Keep the professional appraisal with the rest of your tax records.

4. Check the Kelley Blue Book value if you are donating a car or truck to charity. If the organization you donate the vehicle to ultimately sells the vehicle to raise funds, you should receive a detailed statement showing the final sale price, and you can use that to prepare your taxes.

References

• IRS.gov: Publication 561: Determining the Value of Donated Property
• IRS.gov: Charitable Contributions