When you have items cluttering your home that you no longer want and or need, it makes sense to give them away to charity. Someone out there can use them and the IRS will to give you a tax break for your generosity.
The problem arises when deducting charitable gifts because of tax laws. You may consult a tax professional, but remember, giving is not supposed to end up costing you money.
Fair Market Value According to the IRS
The IRS uses “fair market value” for almost all kinds of donated items based on their condition at the time the donation is made. This is where things can get tricky. You may think that flat screen TV you replaced with a brand new model is in great shape…but is it?
The IRS defines fair market value, or FMV, as what a consumer would normally be willingly pay for an item. Both parties must have “reasonable knowledge of the relevant facts.” That might seem a bit vague but, unfortunately, there is no specific formula.
The IRS also has a rule that clothing and most household items must be in good shape — in a “good used condition or better.”
Some software programs will help you calculate values, just make sure the version you’re using is not out of date.
Household Appliances
Top values for appliances can vary depending on the type of appliance. Some can be worth twice as much in excellent condition, while some others might be valued at four or five times as much. These are the 2019 ranges for some of the most common:
- Air Conditioners: $21 to $93
- Gas Stoves: $52 to $130
- Televisions: $78 to $233
- Washing Machines: $41 to $156
- Dryers: $47 to $93
- Microwaves: $10 to $50
- Electric Stoves: $78 to $156
Televisions have to be color models and they must be in working condition at the time you donate them.
Electronics
While this list is by no means exhaustive, and you may need the help of an appraiser or other professional for more expensive, high-tech items. However, assuming you only want to give away that old laptop or desktop computer you just upgraded, here are some of the ranges from 2019:
- Monitor: $5 to $51
- Printer: $5 to $155
- Computer System: $104 to $415
Furniture
A lot of variables exist in this category, and age may not be much of a determinant. What if you are donating an antique? It might be old, but that doesn’t necessarily makes it worthless. In fact, it has probably increased in value. You will almost certainly need an appraisal in those cases.
Otherwise, you can expect to deduct about this much:
- Bed/Twin: $35 to $75
- Bed/Full or Larger: $50 to $170
- Lamps: $5 to $75
- Coffee Table: $15 to $65
- Desk: $25 to $140
- Dresser (with mirror): $20 to $75
- End Table: $10 to $50
- Rugs: $20 to $90
- Sofa: $35 to $200
- Upholstered Chair: $25 to $75
Remember, these items fall under the “good used condition or better” IRS rule. You can still donate loveseat away if your toddler spilled cranberry juice on the cushion, but you won’t get a tax deduction for it.
Big-Ticket Items
You can not really take a semi-educated guess as to value when it comes to donating an expensive item. Things like jewelry, artwork, paintings, and antiques pretty much always require appraisals.
The IRS suggests that all artwork valued at over $5,000 be appraised, and you absolutely must have the item appraised if it is worth $20,000 or more. You will need to attach a copy of the appraisal to your tax return.
You may request a Statement of Value from the IRS if you’re donating anything that is extremely valuable — donations worth $50,000 or more — but this will cost you $6,500 for one to three items and an additional $300 each for every item over three.
You will also have to submit Form 8283 and complete Section B for these donated items. Form 8283 must be submitted for all donations valued at over $500, but really pricey gifts over $5,000 require that you fill out Section B of the form as well.
As for donated aircraft, cars, and boats, the rules here can be tricky and you might have a choice of valuation methods depending on what the charity does with the gift. You will most likely need the help of a tax professional if you are going to be this generous.
Is All This Worth the Time and Effort?
Remember that you must itemize your deductions to claim your charitable gifts and contributions. This is usually worth your while if your total itemized deductions are more than the standard deduction for your filing status for the year. You can not both itemize and use the standard deduction. For 2019, the regular deduction for single filers is $12,200. It is $24,400 for married taxpayers who file joint returns, and is $18,350 for those who qualify as head of household.
