What this line means
How you determined the fair market value of the donated property. Common methods include thrift shop value (for clothing and household items), comparable sales (for similar items sold recently), appraisal (for valuable items), and market quotation (for publicly traded securities). The IRS evaluates your claimed FMV based on whether the method used is appropriate for the type of property.
Does this apply to you?
- You need to explain how you arrived at the fair market value on line 1f
- You used a valuation guide, comparable sales, or professional appraisal to value the donation
- You donated publicly traded securities and used the market price
- You need to document your valuation method in case of audit
Easy to overlook
Different property types require different valuation methods Thrift shop value works for clothing and household goods. Comparable sales work for vehicles, electronics, and collectibles. Market quotation works for publicly traded securities. Using an inappropriate method — like appraising a $50 item or using thrift shop value for fine art — undermines the claimed value. Match the method to the property type. 1 IRS Publication 561 — Determining the Value of Donated Property
Online pricing guides are acceptable for common items For vehicles, the Kelley Blue Book or Edmunds provides acceptable fair market values. For used clothing, Goodwill’s online valuation guide provides reasonable ranges by item type and condition. These published sources carry more weight than personal estimates if the IRS questions your valuation. 2 IRS Form 8283 instructions — Section A
Watch out for this
Writing “estimated” as the method without further explanation. The IRS wants to know how you estimated the value. “Estimated based on Goodwill valuation guide” or “estimated based on comparable eBay sales” provides the substantiation the IRS needs. A bare “estimated” suggests guesswork and weakens your position if the deduction is challenged.
Footnotes
-
IRS Publication 561, Determining the Value of Donated Property, Valuation Methods. https://www.irs.gov/pub/irs-pdf/p561.pdf ↩
-
IRS Form 8283 Instructions, Section A, Column (g). https://www.irs.gov/instructions/i8283 ↩