How much well I get to write off for tax deductions if I donate books?

Question

I have quite a lot of old books I need to get rid of and am considering donating them if the tax deductions are significant. Does anybody have experience with donating books? How would the books get valued?

Answer 1

The safest way to value them is fair market value. If you go to a site like bookfinder.com (I have no financial interest in them, but I've used them for years), you can see what a book will fetch. Use the lowest price for a book in similar condition.

You can go to an appraiser, but the appraisal will cost money. They may well give you a buy bid of 1/4 list for common books, and they'll try to sell it at 55% of list, if they even want it. Watch for low-ball bids.

Tax documentation: Itemize your list, and get someone at the donee's firm to sign off on it in writing, notarized if the donation is big enough. Take pictures or videos at the donee's site of you, them and your books. Talking into the mike, one book at a time, is overkill, but it works (It's the best way to defend an insurance claim, or in your case, a tax audit). Save any sales slips on those books as proof of purchase: save the credit card bill if it documents your original purchase. If you're making a donation that's even a few percent of your income, consider using a tax preparer who's familiar with audit risk for such a large donation. Even if it's a small donation, get a receipt.

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Answer 2

Used items are valued, for tax purposes, as what you'd buy them for at a yard sale or thrift store. As mentioned previously, if you're donating high end books (like first editions or something), you definitely need a certified appraisal on the property.

Just as a extra point, the IRS now requires that all donated items must be in a minimum of good condition. Translated, that means you can't expect to write off something that is damaged or is in some way unusable (like a book that has a missing cover, missing pages, marked up pages, etc.).

Make sure you get a receipt from the charity, too!

Answer 3

Fair market value is what you can deduct from you taxes. This could be what you would sell them for at a yard sale or maybe a used book store that would purchase them from you. Make sure you get a receipt from the charity you donate them too, also realize this will be for next years tax return. Good luck and remember that the schedule A has a seperate section for donated items versus money.

Answer 4

The amount you can deduct would be the fair market value. On a hardback, that's probably anywhere from 50 cents per book to a dollar or two, depending on condition and how desirable the book is - more for collectible books. Check a few of them on ebay or on amazon.com used books (and don't include the shipping, just the price of the book itself). For paperbacks, probably 25 cents to 50 cents. These are typical prices for used book sales, like at libraries or Salvation Army.

If they've been in your basement and are smelly, just throw them out - nobody wants them.