If your item was actually sold, was it sold relatively close to when you donated your goods? If so, the IRS finds that the value is a good reflection of FMV. Were you involved in the resale of the item? In calculating FMV, the IRS wants the resale of the donated property to be at “arms length,” meaning that the person making the contribution was not involved in the resale of the property. If an item that you donated can still be purchased for a the same amount that you paid, even if the item’s value is greater than that cost, you will only be able to claim the purchase price. For example, you purchased goods at wholesale for $5,000 but the resale value at the time of donation was $10,000. The IRS only allows you to claim $5,000 as the fair market value so long as the item was still being sold elsewhere at wholesale prices. In some instances you would be able to take the higher deduction with appropriate documentation. If there was an increase in the value of an item, you could claim the increased price as your FMV, so long as you have an expert explaining why this was a unique situation. For example, you purchased a painting for $10,000 and at the time of donation, one year later, it was worth $15,000. Since this was a unique item, unlike wholesale goods, you can claim $15,000 as your charitable donation. You are required to get an official appraisal establishing the new price. [1] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source

When using this method of valuation, you have to be careful to choose property that is similar not only in the type of property but also in a similar condition. For example, if you donated a rare book that was slightly damaged, you could not use the sale price of the same book in pristine condition as a comparable sale. [3] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source You can look online at places such as EBay or visit stores such as Goodwill and Salvation Army to determine the selling price for comparable clothing and household items. [4] X Research source

Whether the expert is knowledgeable and competent; and Whether the expert’s opinion is thorough and supported by facts and experience. An expert must provide you with a written appraisal of the property. [5] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source

Salvation Army does not accept items that are torn, dirty, or broken. Goodwill states that if you would be willing to give the item to a friend or relative then it is in good enough condition to donate. If you donate a used item that is worth more than $500, then the IRS allows the item to be in less than good condition. [6] X Research source

Furniture and furnishings. Electronics. Appliances. Linens, and other similar items. Household items for purposes of charitable deductions do not include: food; paintings, antiques, and other objects of art; jewelry and gems, and collections.

Charitable organizations, such as Goodwill or the Salvation Army, provide price lists for items that they sell in their stores. These lists can be used to calculate FMV for your donated items. You can view the Salvation Army’s value guide at: http://salvationarmysouth. org/valueguide-htm/. You can view Goodwill’s value guide at: https://www. goodwill. org/wp-content/uploads/2010/12/Donation_Valuation_Guide. pdf.

You can locate the average sale price of a car at http://www. kbb. com and http://www. edmunds. com/tmv. html. The FMV of your donated car may be less than the amount listed on one of the above websites if your car has engine trouble, high mileage, or body damage. If you donate a car that is worth more than $500 to a charitable organization, you can make a deduction based on either the gross proceeds of the sale of the car by the charitable organization or the vehicle’s FMV on the date that you made the contribution.

To get a general idea of what your boat’s FMV will be, you can use an online valuation website for boats. You can find this valuation website at: http://www. boats. com/nada-guides/. You can locate an accredited marine surveyor through the Society of Accredited Marine Surveyors at: http://www. marinesurvey. org.

You can look at an aircraft bluebook online at: http://www. aircraftbluebook. com/UserGuide. do?product=ASR§ion=USER_GUIDE&page=INTRODUCTION.

If after grouping your similar items for donation, the total value of the group exceeds $5,000 you must follow the IRS’s special rules for documenting the value of donations worth more than $5,000. [7] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source

A qualified appraiser is someone who has earned an appraisal designation from a recognized professional appraiser organization and has demonstrated competency in appraising the type of items for which you are seeking an appraisal or has met certain education and experience requirements. A qualified appraiser prepares and is paid for his or her appraisals. A qualified appraiser must demonstrate through a declaration in the appraisal that he or she is experienced in valuing the type of items for which you are seeking the appraisal. The appraiser cannot have been prohibited from practicing before the IRS for the three years prior to the date on the appraisal. The appraisal must include the method of valuation, such as the income approach or the market data approach, and the specific basis for the valuation, such as specific comparable sales transactions. You must obtain a separate appraisal for each item or group of items valued at more than $5,000. [8] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source You can locate a qualified appraiser at: http://www. appraisers. org/find-an-appraiser.

A description of the type of property that you donated and its physical condition. The appraised fair market value for each item worth more than $5,000 or group of similar items. The date and manner that the property was acquired by the donor. The donor’s cost in acquiring the item. The donor’s signature. The appraiser’s signature and declaration regarding his or her qualifications. An acknowledgement completed by the donee organization that states that the item was in fact donated. If the items in your group of similar items were donated to separate charities, you must complete a separate Form 8283 for each charitable organization. [9] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source You can download form 8283 at: https://www. irs. gov/pub/irs-pdf/f8283. pdf. [10] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source