How much value can be placed on donated items (for income tax purposes)?

Question

I am going to donate a lot of clothes, books, toys, games, movies and appliances today.

In previous years I have only donated about $300 worth of belongings and the homeowners income tax deduction was straight forward. What are the rules and conventions for larger donations?

How much value can I place on items such as books, Playstation 2 games, and DVDs?

What are the limits/rules that apply? Thanks

Michael - Is it less than $500 or less than $250?

Answer 1

Basically if the individual items are not valued over $500 they do not need an appraisal. If they are valued more than $500 then you will need an appraiser to sign your form 8283.
Also in both cases you need the charitable organization to sign your form 8283.

You do not need to fill out a 8283 form if your total donations are less than $250 total.

Answer 2

The honest marketplace value is generally plenty decrease than the easily purchase value. the ideal thank you to estimate that's to confirm what others are reselling the products for. working example, CD are generally resold around $5-$10 somewhat per how new, the priority and the popularity of the artist. outfits on the different hand is trickier. daily outfits at a thrift shop resale for between $a million an $10. yet a used wedding ceremony gown might value a great deal extra. Estimate quite for the products so which you do not flag your self for audit. additionally bear in suggestions whilst filling out the casualty loss type(s) you may record each and every merchandise in my view and bear in suggestions the dates obtained. that's tedious yet somewhat nicely worth it. As a professional tax preparer, if this gets too complicated for you, it somewhat is definitely nicely well worth the money to pay a tax preparer to do it. we are knowledgeable on the regulations and the breaks the Katrina, Rita, and Wilma survivors can get carry of. you're waiting to get extra money lower back.

Answer 3

The deduction is the used fair market value of the items, what the organization would be able to sell them for. Salvation Army and Goodwill have guidelinevalues for many of your items on their websites. Books, games, and DVD's are probably worth a dollar or two at most, depending on what they are - paperback books are around 25 to 50 cents. A playstation 2 game might be around $5. Get a receipt for the items that you donate - they won't put a $ value on them though, you'll have to do that following reasonable guidelines.

For household goods and clothing, the items must be in good condition at least, or the deduction is zero.

There are special rules for donation of cars, but you don't mention that as part of your donation.

Answer 4

Value is usually about 25% of retail value.

Answer 5

Actual worth. Whatthey would sell for at a thrift store.

Answer 6

25 story books