Donation Value Guide - The Salvation Army USA | Official Southern Territory WebsiteIf you itemize deductions on your federal tax return, you may be entitled to claim a charitable deduction for your Goodwill donations. According to the Internal Revenue Service IRS , a taxpayer can deduct the fair market value of clothing, household goods, used furniture, shoes, books and so forth. Fair market value is the price a willing buyer would pay for them. Value usually depends on the condition of the item. By law, a charity cannot tell you what your donated items are worth. This is something you must do yourself. To assess "fair market value" for your donations:.
When you have items cluttering up your home that you no longer want or need, it only makes sense to give them to charity. Someone out there can surely use them and the Internal Revenue Service is willing to give you a tax break for your generosity. The problem is that deducting charitable gifts is one of the more complex labyrinths of tax law. This is where it can get tricky. You might think that flat screen TV you replaced with a newer model is in great shape…but is it really? The IRS defines fair market value as what a consumer would willingly pay for an item if neither the seller nor the buyer was under any duress to make the sale.
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Whether your donating books because they too heavy to pack and move or out of the kindness of your heart, Uncle Sam rewards you with a deduction on your tax return., My Profile.
Determining the fair market value of used books for the purpose of charitable donations is tricky because there is no formula that can be applied or definitive source on the subject. There are, however, some general guidelines that can be looked to when trying to determine the value of used books, such as how fair market value is defined by the IRS as well as information about different types and conditions and how these factors affect value. In sum, the IRS defines fair market value when applied to used as what a book is worth on the open market or the price that a buyer and seller agree is fair. Consider the type of book being donated when deciding on the fair market value. Hardcover books cost more than softcover books when they are new and therefore the fair market value of hardcover books will be higher. Additionally, hardcover books with a leather binding will have a higher fair market value than those with a cloth binding.
If you've decided your personal library is getting too large, donating books to a library can not only reduce the clutter in your home, but also reduce your income taxes. Most libraries are qualified charities because they are nonprofit educational institutions. If you have questions as to the library being qualified, search on the Internal Revenue Service's database of charities or talk to a library administrator. In general, Uncle Sam permits you to write off the fair market value of the books you donate. Of course, there isn't much guidance on what constitutes fair market value in the IRS rules, just that it's the price a willing buyer and seller would agree on. Usually, the fair market value is significantly lower than the original price, so you're better off using thrift stores or second-hand shops to estimate prices than checking Internet retailers to find the price of the book new. However, if you have a book that is worth a lot of money -- say a Hemmingway-signed first edition -- you might need an appraisal.