Non-Cash Deductions
You save tax dollars when you maximize your charitable deductions. How much can you deduct for the used goods you gave to charity last year? The IRS allows you to deduct the fair market value of an item -that is, the price it would sell for in a thrift shop. The quality of the item when new, as well as its age and present condition, must be taken into account, and may make the item worth more or less. Please note, contributions of clothing and/or household items to charitable organizations after August 6, 2006 must be of "good or better" used condition or no deduction will be allowed.
Here are up-to-date lists of what various items are selling for, on average, at various non-profit thrift stores like the Salvation Army. To determine the value of the items not on this list, some charities suggest taking 15% to 20% of the item's original price as its fair market value. Remember that these are only guidelines. The condition, age, and quality will affect the value of the item and may need to be considered in establishing the fair market value at the time of contribution.