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You can deduct the fair market value of the tools. There are really now special instruction to follow, most people just estimate how much they would get for the donated items if they sold it on e-bay or craig list for instance. If you claim more than 5K for one item, you may need a professional appraisal.
Since this is a noncash donation and I am assuming the total value will be more than $500, you will need another form to file. You will use form 8283 to describe the donations in more details: who did you donated it to, how did you figure out the value, how much did you originally paid for it and such. Good Will and salvation army has a list of items (mostly closing and household items) on their websites to determine estimated value of donated items. That's what H&R Block is using. It is not IRS list or even binding list you have to use.
Fair market value is a value somebody else would pay for it on the open market. For instance for used cars you can use Blue book value, for real estate you can use comparable sale analyses (similar properties sold in the area in last 6 or 8 month). Every reasonable method is acceptable.
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