How do I determine the value of donated items for tax purposes?
The “fair market value” of goods donated to a thrift store is deductible as long as the store is operated by a charity. One cannot take a deduction if the goods are sold on a consignment basis whereby the original owner gets a percentage of the final sales price. Most Not For Profit thrift shops give donors a blank receipt at the time a donation is dropped off. They do not itemize the receipt because they generally can not process the items until a later date. It is up to you to itemize your donation and determine a value for the goods. Get a copy of IRS Publication 561, “Determining the Value of Donated Property,” this information will help you determine the value of your donations and also outlines how to support the deduction on your tax return. The publication states, “If you give used clothing to the Salvation Army, the FMV (Fair Market Value) would be the price that typical buyers actually pay for the clothing of this age, condition, style and use. Usually, such items are worth f
