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1. Find Items

2. Donation Receipt

Item Cond. Qty Value
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About

When itemizing deductions on Schedule A (Form 1040), the IRS requires taxpayers to determine the Fair Market Value (FMV) of donated property. The burden of proof lies entirely with the donor. Most taxpayers significantly underestimate the value of their donations due to a lack of reliable data, or worse, overestimate and trigger an audit.

This professional-grade calculator solves this friction by integrating a database of over 500 common household items with current market valuation ranges based on Thrift Shop and Consignment averages. It adheres to IRS Publication 561 guidelines, ensuring values reflect the price a willing buyer would pay a willing seller.

Key Advantages:

  • Audit Safety: Uses conservative-to-market ranges compliant with IRS expectations.
  • Condition Logic: Distinguishes between Good (standard used) and Mint (like new) conditions, affecting value by a factor of k.
  • Instant Documentation: Generates a formalized receipt meeting the substantiation requirements for non-cash charitable contributions.
donation value guide tax write-off irs schedule a thrift value audit protection

Formulas

The calculator employs a weighted valuation model dependent on the item condition coefficient λ. The total deductible value V is defined as:

V = ni=1 [ qi × (Bi × λ) ]

Where:

  • q is the quantity of item i.
  • B is the base market value (Good condition).
  • λ is the condition multiplier defined as:
λ =
{
0.40 if Poor/Fair1.00 if Good (Standard)1.85 if Excellent/Mint

We also check against the AGI limitation rule:

Status =
{
WARN if V > 0.5 × AGIOK otherwise

Reference Data

CategoryItem DescriptionFair Condition ($)Good Condition ($)Excellent Condition ($)
Men's ApparelSuit, Designer (Wool)25.0065.00140.00
Women's ApparelHandbag, Leather (Designer)35.0085.00200.00
ElectronicsLaptop, i5/i7 (3-5 yrs old)50.00120.00250.00
FurnitureDining Set (Table + 4 Chairs)75.00175.00400.00
AppliancesRefrigerator (Working)50.00150.00300.00
Musical Inst.Guitar, Acoustic (Student)20.0045.0090.00
SportsTreadmill (Motorized)40.00110.00250.00
ToolsPower Drill (Cordless)10.0025.0055.00

Frequently Asked Questions

Tax deductions are only permitted for contributions to qualified 501(c)(3) organizations. Donations to individuals, political organizations, or candidates are not deductible. Always verify the charity's status with the IRS Tax Exempt Organization Search tool.
"Fair" implies visible wear but fully functional. "Good" is the standard for used items - no holes, stains, or structural damage. "Excellent" means the item is practically new, often with tags or original packaging. The IRS generally denies deductions for items in poor condition (unusable/dirty).
If you claim a deduction of more than $500 for a single non-cash item (or a group of similar items), you must file IRS Form 8283. If the value exceeds $5,000, you generally need a qualified written appraisal from a certified appraiser.
Yes. While you cannot deduct the value of your time, you can deduct mileage driven for charitable service. The standard mileage rate for charity changes annually (historically around 14 cents per mile), or you can deduct actual gas/oil costs directly related to the trip.
Tangible goods depreciate rapidly. The IRS requires "Fair Market Value" (FMV) - the price a buyer would pay today at a thrift store, not the retail replacement cost. Using retail prices is a common red flag for audits.