Image by JenWaller via Flickr
When you make a donation of a non-cash item to a charity or nonprofit organization you are able to use that donation as a tax-deductible item. The problem is most non-cash items need to have a cash value in order for you to be able to deduct it on your taxes. This leaves you with the chore of having to assess of value to the non-cash item you donated.
Here’s a look at how you can determine the value of your non-cash donations so you can deduct them on your taxes.
Condition of the Item
You will need to assess the condition of the item that you donated in order to determine the value. Although many charities may accept items that are broken, stained or torn these items cannot be used as a tax-deductible item.
Fair Market Value of the Item
If the items you are donating are in fair condition you can assess a fair market value to the item. Fair market value is the price that the item is going for in a secondhand shop. Once you have assessed the fair market value for the object you can determine its price for your taxes.
Some donated items are new or can sell for the price you paid for the object. If you still have the receipts for the object you can declare the value of the item as the price on the receipt.
Learning how to determine the value of your donations can help you fill out your taxes and receive a tax credit for making a charitable donation.