How Do You Determine Fair Market Value Of Donated Items?
According to the Internal Revenue Service, fair market value (FMV) is “the price that a property would sell for on the open market. It’s the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant fact.” Unfortunately, there is no single formula to determine FMV. All relevant facts–such as the desirability, use and scarcity of the property donated–must be considered. Know that due to their worn condition and dated style, household goods such as furniture, appliances and linens usually have little or no market value. FMV can be assessed by judging these items against comparable items at used or second-hand stores, which is usually far below the price paid for these items when they were new. A qualified appraisal is required on deductions greater than $500. Don’t claim a fixed formula or method to judge FMV for used clothing and other personal items; there is no such formula. Ho
