How do I Itemize Fair Market Value for Charitable Deductions?

You must file using form 1040 if you claim any charitable deductions.

The Internal Revenue Service permits taxpayers who itemize their deductions to write off the fair market value of their donated property. The IRS defines the fair market value to be the price a willing buyer and seller would agree upon. Only donations that you make to a qualified charity can be deducted. You can check the status of an organization by searching the online database of qualified charities (see Resources).

Things You'll Need

• Schedule A
• Form 8283
• Form 1040

Instructions

1. Use form 1040 to file your income taxes and attach Schedule A to itemize your deductions.

2. Report the fair market value for your charitable deductions on line 17 of Schedule A. This amount will be used to reduce your taxable income for the year.

3. Complete form 8283 if your deduction exceeds $500. If the deduction falls between $500 and $5,000, you must complete part A of form 8283. If your deduction exceeds $5,000, you must complete part B of form 8283 and include a qualified appraisal of the item.

References

• Internal Revenue Service: Publication 526
• Internal Revenue Service: Form 8283 Instructions

Resources

• Internal Revenue Service: Form 1040
• Internal Revenue Service: Schedule A
• Internal Revenue Service: Form 8283