How to Determine Thrift Store Value

Fair Market Value

Determining value is very important when you donate items such as clothing, electronics and appliances to the Salvation Army or other thrift stores or charities. Your donations are tax deductible, and when you make a donation, the value of the item is up to you to fill in on the receipt. In order to get the most tax deduction, you will need to accurately estimate the value of the item.

Instructions

Determining the Fair Market Value

1. 

   It is important to have some type of value guide to properly access the value of your donated items. The Salvation Army is one of the leading charities that accepts donations, and they have a valuation guide for just this purpose. The actual value of each item will vary on certain factors such as the condition or the area that you live in. The higher the demand is for the item, the more value it will have. If the item is in poor condition then you will not be able to value it as highly as some of the similar items you find on the market today. These guides provide you with a baseline as to what the item may be worth.

2. 

   Online auctions are essential

   On-line auction sites are also a good source for finding the fair market value of your items. Many times, secondhand items will sell for much more at an on-line auction such as eBay. It is best to print out the prices for items that have sold so you have something to show in the event of an audit.

3. 

   Check local thrift stores

   It is best to visit local thrift stores to do comparison pricing on items that are similar to the ones that you are donating. What you are looking for is the fair market value or the price that someone is willing to pay for the donated item in a thrift store. It is good to visit a few stores to get a good idea of what the going price is as well as the what the demand is for similar items. You can then base your value of the item on your price comparison.

4. 

   Consult an appraiser

   There may be times when you are donating a high-priced item such as a piece of jewelry and then it is best to get someone to appraise the value. You can then keep the appraisal for your tax records to show proof of the value.

References

• Salvation Army: Valuation Guide
• Kiplinger: Assessing Donated Items' Guide