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  1. #1

    Default How to Determine the Value of Donations for the Charitable Donations Deduction

    I've been told a charitable donation deduction value should be an amount the receiving charitable organization would reasonably expected to resell an item for. E.g., A lamp worth $50 should only have a deductible value of say, $7...etc. But what about items (new and used) donated to colleges, universities, schools? If items are new in value, can a full value of the item be deducted since such an organization would use the items rather than resell them?

  2. #2
    Join Date
    Oct 2014
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    7,941

    Default Re: How to Determine the Value of Donations for the Charitable Donations Deduction

    The rule for most donations of property is that you may deduct the fair market value of the goods (i.e. the price for which you could sell those items in an arms length transaction to an unrelated buyer). Used household goods and clothing generally get consignment shop value because that is their fair market value — that’s all anyone would pay for them. Used household goods and clothing have the additional limitation that they must be in at least “good used condition or better” to get any deduction at all. The text books, etc., that you donate would similarly be limited to the fair market value of those items at the time you donate them. See IRS Publication 526 which explains the charitable deduction rules in more detail.

  3. #3
    Join Date
    Mar 2013
    Posts
    17,924

    Default Re: How to Determine the Value of Donations for the Charitable Donations Deduction

    Quote Quoting edkrane
    View Post
    If items are new in value, can a full value of the item be deducted since such an organization would use the items rather than resell them?
    If you buy something brand new, keep the receipt in your permanent records, and donate it in its original unopened package, you get to take a charitable deduction for the full price.

    Is that what you mean by "new in value"?

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