Fair Market Value

• Claim a tax deduction equal to the fair market value of the donated property. For money, simply claim the amount of money donated. For other property, make an educated guess as to the fair market value.
  
  

Calculating Fair Market Value

• There is no set formula for calculating fair market value; it is generally the price for which the property would sell on the open market.
  
  

Household Items Over $500

• If you donate household items, such as a couch or clothing, and claim a deduction for over $500, you will need to have the property professionally appraised before you can legally claim the deduction. As long as you claim less than $500, you do not need an appraisal.
  
  

Other Deductions Over $5,000

• If you donate an item of property (or a group of similar property items) that is worth over $5,000, the property or group must be appraised before legally claiming the amount of the deduction.
  
  

Other Calculations

• If the IRS does not require an appraisal, simply make the best guess as to the fair market value of the property; try to estimate as accurately as possible.