Donations other than CashEnclosed please find a guide sheet link (based on "Goodwill/ Salvation Army-type estimates") as to the approximate fair market value of various items you may have donated to charities. It lists a relatively conservative high and low dollar amount you may wish to use as a guide for taking an itemized deduction under the charitable donations section.
What exactly is "Fair Market Value?" In effect, it is the re-sale value of the item, or what a given buyer would pay for the item in its given state. This value is based on such issues as its physical condition, its age, and if it has any antique value.
Thus, the difference between the high and low fair market value figures represents the difference in condition of the item donated:
Items that are in good to excellent condition may qualify for the higher figure; while those in fair to poor condition would list at the lower figure.
These donations can add up to a significant itemized deduction, so you should keep this as a handy reference for current and future donations.
IRS Recordkeeping Requirements
In the event of an audit, the IRS can require various types of proof in order for you to qualify for this type of donation. According to IRS
Publication 526, Charitable Contributions, you should be prepared to provide
the following:
• A detailed list of the items donated, and their condition.
• Name and address of organization to which you made the donation.
• Proof of receipt of the items from the charitable organization.
Usually, you provide a list of all items when you make the donation, and the organization will stamp and date this list so you can use it for your tax return.
Any single item you are donating that has a fair market value of $500 or more requires further detail. You must also state how the item was acquired (bought, inherited, etc.), when it was acquired, how much it originally cost, and the method you used to determine fair market value. Any item with a claimed value of more than $5,000 requires an appraisal that the IRS would deem acceptable.
A Tip To Reduce Your Chance Of An Audit In This Area
If you will be claiming significant deductions for donations other than cash, a copy of the detailed list of items, along with proof of receipt from the charity can go a long way toward heading off an IRS inquiry here, along with any required appraisals. The list does not have to be typed or computerized. A legible, handwritten, itemized list will do nicely.
GUIDELINES
• You don't have to send in your list of donated items with your return. Simply keep the information with your personal tax records and put the total contribution amount on line 17 of your Schedule A.
• Be sure to get, again for your personal records, a receipt from the charity of your donated goods. The nonprofit won't put a dollar value on this receipt, but it will help you prove that you did indeed donate the property if the IRS later asks.
• If you do make a single noncash gift worth between $250 and $500 (for example, you donate a vehicle), you will need that receipt or a written acknowledgment of your gift from the qualified charitable organization.
• If the total of all your contributed property comes to more than $500, you have to file IRS Form 8283 with your tax return.
Men's clothing work sheet | |||
| Average price per item low and high | Number of items x price = donation amount | ||
| Shirt | $3.00 | $14.40 | _____ x _____ = _____ |
| Slacks | $6.00 | $14.40 | _____ x _____ = _____ |
| Sweater | $3.00 | $14.40 | _____ x _____ = _____ |
| Overcoat | $18.00 | $72.00 | _____ x _____ = _____ |
| Belt or necktie | $3.60 | $9.60 | _____ x _____ = _____ |
| Suit | $18.00 | $72.00 | _____ x _____ = _____ |
| Jacket | $9.00 | $30.00 | _____ x _____ = _____ |
| Shoes | $4.20 | $30.00 | _____ x _____ = _____ |
| Total of all donated items: | _____ x _____ = _____ | ||
Women's clothing work sheet | |||
| Average price per item low and high | Number of items x price = donation amount | ||
| Blouse | $3.00 | $14.40 | _____ x _____ = _____ |
| Slacks | $4.00 | $14.40 | _____ x _____ = _____ |
| Sweater | $3.00 | $18.00 | _____ x _____ = _____ |
| Overcoat | $12.00 | $48.00 | _____ x _____ = _____ |
| Handbag | $2.40 | $24.00 | _____ x _____ = _____ |
| Suit | $18.00 | $72.00 | _____ x _____ = _____ |
| Jacket | $7.20 | $30.00 | _____ x _____ = _____ |
| Shoes | $2.40 | $30.00 | _____ x _____ = _____ |
| Total of all donated items: | _____ x _____ = _____ | ||
Children's clothing work sheet | |||
| Average price per item low and high | Number of items x price = donation amount | ||
| Blouse | $2.40 | $9.60 | _____ x _____ = _____ |
| Shirt | $2.40 | $7.20 | _____ x _____ = _____ |
| Dress | $4.20 | $14.40 | _____ x _____ = _____ |
| Slacks | $2.40 | $9.60 | _____ x _____ = _____ |
| Jeans | $4.20 | $14.40 | _____ x _____ = _____ |
| Coat | $5.40 | $24.00 | _____ x _____ = _____ |
| Sweater | $3.00 | $9.60 | _____ x _____ = _____ |
| Shoes | $3.00 | $10.50 | _____ x _____ = _____ |
| Total of all donated items: | _____ x _____ = _____ | ||
Household goods work sheet | |||
| Average price per item low and high | Number of items x price = donation amount | ||
| Towels | $0.60 | $4.80 | _____ x _____ = _____ |
| Sheets and pillows | $2.40 | $9.60 | _____ x _____ = _____ |
| Blanket | $3.00 | $9.60 | _____ x _____ = _____ |
| Bicycle | $18.00 | $78.00 | _____ x _____ = _____ |
| Floor lamp | $9.00 | $48.00 | _____ x _____ = _____ |
| Sofa | $42.00 | $240.00 | _____ x _____ = _____ |
| Throw rug | $1.80 | $14.40 | _____ x _____ = _____ |
| Color TV | $90.00 | $270.00 | _____ x _____ = _____ |
| Kitchen table | $30.00 | $72.00 | _____ x _____ = _____ |
| Bedroom (double) complete | $60.00 | $204.00 | _____ x _____ = _____ |
| Total of all donated items: | _____ x _____ = _____ | ||
| Here are a few handy websites to help you evaluate your noncash items: |
• Valuation Guide for Goodwill Donors - Goodwill Industries ...
• Usedprice.com contains Blue Book valuations for different categories of noncash donations from television sets and computers to guns, musical instruments, power tools and more.
Reference: Practice Enhancers, Able & Co., Bankrate
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