Short Explanation: This is an excellent guide to detemine the tax deduction for clothing, household items, etc.
Print it and use as your tax documentation as to how you arrived at the value of the non-cash donations.
Longer Technical Explanation:
If an individual donates property they may deduct the property’s fair market value at the time of the donation, subject to the statutory limitations on such donations. Fair market value is defined as the price at which the property would change hands between a willing seller and a willing buyer. For property, it is generally held that fair market value is the price at which the item or a comparable item would be sold at retail (IRS Rev. Proc. 65-19, 1965-2 CB 1002). Further, the fair market value of used clothing and household items is the price that buyers of used items actually pay in used clothing stores (Treasury Department booklet, Your Federal Income Tax, 1993 edition, p.186).
It is the donor’s responsibility to determine the value of donated items.
If the donation is $250 or more, but does not exceed $500, a written acknowledgment of the donation must be provided by the donee. In the case of VVA, the donation receipt fulfills this obligation.
If the donation is over $500, but does not exceed $5,000, the donor must complete IRS form 8283, Non-cash Charitable Contributions, Part A only. They should file this form with their tax return.
If the donation is over $5,000, the donor must complete IRS form 8283.