How to Estimate the Value of Donated Items for a Tax Return
If you are donating items to a charitable organization to deduct them on your income taxes, the Internal Revenue Service only allows you to claim the fair market value of those items. Since the IRS does not have any specific formula for determining the value of donated items, coming up with that value can seem a bit tricky. Fortunately, there are some acceptable parameters that you can work within to come up with a value for your donated items.
Other People Are Reading
Instructions
-
-
1
Look for similar items offered for sale in your local newspaper's classified ads section. You can also visit local thrift stores or yard sales, if similar items would be in those places. For example, if you are selling a used coffee table, you may find one at a thrift store or in the classified ads. You can use the sales price as the value.
-
2
Ask a professional to appraise the donated items if they are of high value. For example, if you are donating antiques or real estate you need to have a written appraisal that confirms the value of the items.
-
-
3
Use a valuation guide to get the value of the items. If you are donating a vehicle or boat, you can use the Kelley Blue Book or NADA Guides websites for valuation. For household goods, appliances and furniture, you can use the valuation guide on the Salvation Army website.
-
1
Tips & Warnings
If you get several different figures for the value, you can take the average of those numbers and use it for your value.
References
Resources
- Photo Credit Comstock/Comstock/Getty Images
