How to Find the Market Value of My Donations

Tax forms.

When you donate items to charity, such as clothes, furniture or appliances, you are qualified for a tax deduction equal to the value of your donations. However, you have to determine the fair market value of all of the items before you can apply the deduction to your tax forms. Fair market value is defined as the amount of money that the donation would sell for in a non-donation setting.

Instructions

1. Check thrift stores to determine the price that customers would normally pay for used donations such as clothes or household goods. Determine the average price of a used article of clothing or piece of furniture such as a couch.

2. Determine the value of used items such as cars or boats by checking the blue book guide for that item. The blue book will tell you how much the item is worth, depending on its age and physical condition. Make a copy of the page in the book that describes you item to keep on record for tax purposes. If you are determining a blue book value online, print out a copy of the page that shows the determined value.

3. Ask for receipts any time you donate an item to charity. A donation receipt is helpful in case you are ever audited. Place the receipts in a special file with your other tax documents.

4. Fill out an Internal Revenue Service From 8283, which states the name and address of the recipient organization of your donations. This form details information about the items donated, including their condition and market value.

5. Seek the advice of a tax attorney if your donations exceed $5,000. Special tax laws apply to donations of this size.

Tips & Warnings

• Get an estimate from a marine surveyor if you are donating a boat.

References

• IRS: Donated Property

Resources

• Salvation Army: Donation Value Guide