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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2995
Experience:  IRS licensed Enrolled Agent and tax instructor
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I made a charitable deduction to Habitat. I have an itimized

Customer Question

Hello, I made a charitable deduction to Habitat for Humanity. I have an itimized list of the tools, like drills, belt sanders, palm sanders, windows, nail guns, boxes of various screws.
How can I find what value to assign to these items..they were gently used tools and may other items , 200ft of electrical wire, electric boxes, covers, etc etc..
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi, Bob. My name is ***** ***** I will be happy to help you.

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.

Customer: replied 1 year ago.
Ok, so like used clothing and furniture , there really is not a list that the IRS uses to determine valuation? I went to H&R block they had a list for clothes and stuff but not building materials...So whetever they are selling for on line is a fair market value? Does that raise my risk for an audit? I have a receipt from the charity, they did not itimize it.
Expert:  emc011075 replied 1 year ago.

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.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.