| Add Items to Your Donation |
You can either search or browse to find your items. Once you find your item, you'll enter a value for it on an Item Value Worksheet. Enter all items you donated on the same date. When you are finished, select Add Items To My Donation to see your Item Donation Summary.
From the Item Donation Summary associated with each donation date, you can select Add More Items or Done With This Donation.
When you are finished entering all items, select Done With Item Donations from the main Item Donations page.
If you do not find your item, select the Add It link, found at the bottom of each Item Value Worksheet, to add your own custom item and assign a value to it.
If you donate new or used goods to a qualified organization, the amount of your charitable deduction is the fair market value of those goods at the time they were donated.
These goods would include items such as clothing, household goods, toys,
sporting equipment, tools, furniture, etc. Household good includes furniture, electronics,
appliances, linens, and similar items. Household items do not include food, or relatively more
expensive items such as art, jewelry and gemstones and collections.
| IRS Publication 526 | IRS Publication 561 |
| Show Examples |
The IRS defines fair market value as the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act and both having reasonable knowledge of the relevant facts.
| IRS Publication 561 |
Factors that affect the fair market value of an item include: condition, style, use, and age. ItsDeductible considers these factors together as contributing to an item's value
You also need to consider the length of time you have owned an item .|
Items Owned
|
Deduction Can Be
|
| Less than one year | No more than the original price paid |
| More than one year | Generally at the fair market value (Consult IRS publication 526for certain exceptions.) |
| Show Examples |
Combined, these factors define the value of an item. Since there is a strong relationship between age and the other factors that affect the overall value of an item, age is not included separately in the table below.
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Value
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Factors | Examples |
|
High
|
Style | Top brands/manufacturers, features, materials, etc. |
| Condition | Looks new, no noticeable wear | |
| Use | Is still useful for the average consumer today | |
|
Medium
|
Style | Mid-level brands/manufacturers, features, materials, etc. |
| Condition | Shows slight wear | |
| Use | Could be used by most consumers today | |
|
Low
|
Style | Low end or outdated |
| Condition | Obvious wear/use, but still functional | |
| Use | Not useful for most consumers today |
| Learn More | Show Examples |
Typically, "low" value is a key indicator that a donated item was of less than good used condition, which means clothing and household items of low value would not be deductible items under the new tax law. The IRS may also deny a deduction for any item with minimal monetary value, such as used socks or underwear.
To avoid an inadvertent violation of this new law, ItsDeductible will not allow you to make any entries for clothing and household items in the Low value column if your donation is after August 17. However, you will still be able to enter items of low value if you donated them on or before August 17. See value definitions.
Go to TopIf you donate property with a fair market value that is more than the original cost of the property, special rules apply.
If you have owned the property for 12 months or less, then you are allowed to deduct only your original basis in that property. Your basis is either the amount then you could deduct the full $1,000 you originally paid for it, or, if you received the property as a gift, your basis is what the original cost was to the original owner of the property. For example, if you buy a piece of art for $800 and donate it just six months later for $1,000, you are only allowed to deduct your basis of $800.| IRS Publication 526 |
To provide reliable estimates of the dollar value of items, ItsDeductible collects and analyzes pricing information from multiple data sources
including various thrift and consignment stores. The data is then aggregated, filtered for quality control,
and run through an algorithm for further accuracy.
Results are reviewed by two tax experts. The resulting dollar amounts are utilized in ItsDeductible to assist you in valuing your items.