How to Get an Appraisal on Donated Goods

Get an appraisal for your donated items.

The Internal Revenue Service, or IRS, allows a deduction to be taken on donations made to thrift shops and other qualified institutions. In order to prove that these donations were made, you must obtain a receipt that lists the appraisal amount for the goods donated. This appraisal amount is the fair market value of the donated goods. Items worth more than $5,000, however, must be appraised by a qualified appraiser.

Things You'll Need

• Donation receipt
• Qualified appraisal letter
• Form 8283

Instructions

1. Make an appointment with the charity or organization to which you wish to donate. You need a representative of the charity or organization to review your items to determine their value, so you cannot just drop the items off.

2. Request that the charity's representative create an itemized list of your donated materials, awarding a fair market value for each item. The fair market value is the amount that the charity believes they can get for the item if they were to sell it. This method of appraisal is acceptable for items that are less than $5,000 in value.

3. Take all items worth more than $5,000 to a qualified appraiser. This will cost you a few dollars, but the tax deduction you will receive in the end will make up for it. Along with a copy of the qualified appraisal issued to you, you must fill out and attach Section B of IRS Form 8283.

4. Make an appointment with a qualified appraiser if you plan to donate property totaling more than $500,000. The IRS does not require any additional forms to be filled out, but you will need to attach a copy of the qualified appraisal given to you by the appraiser to your tax forms when you submit them. Again, qualified appraisers charge a fee for their service.

Tips & Warnings

• If your local thrift shop is unsure of the fair market value of an item, they can use the list created by the website Tax Wizzard to get an acceptable figure. The list was created with the help of Goodwill and the Salvation Army.

References

• IRS: Publication 561
• H&R Block: Tax Tip 16

Resources

• Tax Wizzard: Taxpayer Guide to Donated Goods