Valuing Donated Property: Fair Market Value and Appraisal Rules
Published November 7, 2026
Publication 561 (Rev. December 2025), Determining the Value of Donated Property, explains how to find the value of property you give to a charity. This guide covers the basic rules. It is general information. It is not advice about your return.
Start with fair market value
Before you claim a deduction for a gift of property, you must find its fair market value (FMV) on the date of the gift. The publication describes FMV as the amount the property would sell for on the open market. It is the amount a willing buyer and a willing seller would agree on. Neither one has to act, and both know the relevant facts.
The publication lists several ways to value property. These include cost, appraisals, sales of comparable property, and replacement cost. It explains when each method fits, and it warns against relying too much on past events to predict value.
Replacement cost is the amount it would cost to buy or build the same property. The publication also discusses cost and sale amount as indicators of value. It explains when those figures are a good indication and when they are not. Read that discussion before you rely on the amount you paid.
Used clothing and household items
Used clothing and household items are usually worth far less than their original cost. The publication says the FMV of used household items is usually low, because they often have little or no market. For used clothing, the publication's example uses the amount typical buyers actually pay for clothing of that age, condition, style, and use.
There is one rule to watch. A household item that is not in good used condition or better can still get a deduction. If you claim more than $500 for that item, you must get a qualified appraisal and complete Form 8283.
Deductions over $5,000
For an item or group of similar items, a claimed deduction of more than $5,000 generally requires two things. You need a qualified appraisal signed and dated by a qualified appraiser. You also need to complete and attach Form 8283. The publication lists exceptions, such as publicly traded securities.
The publication gives an example of several gifts of the same kind. If you give books to three schools and deduct $2,000, $2,500, and $900, the total deduction is more than $5,000 for those books. The appraisal and Form 8283 rules then apply.
Art and collectibles
A donation of a collection valued at more than $5,000 also needs a qualified appraisal and Form 8283. The publication says art valued at $20,000 or more has its own rules, so read that section before you file.
Gems, jewelry, and other special items
The publication says gems and jewelry almost always need an appraisal from a specialized jewelry appraiser. The appraisal should describe the item in detail and explain how the appraiser reached the value.
Sales that may not show value
Some sales do not show fair market value. The publication warns that liquidation sales and other unusual market conditions can make a sale a poor guide to value. It also warns against relying too much on past events to predict value. It says to use caution with value guides, because a guide may not match the condition or market for your item.
Cars, boats, and aircraft
Only certain cars, boats, and aircraft, called qualified vehicles, can produce a deduction when given to a qualified organization. The publication refers to Publication 526 for those rules.
Keep the records
Keep the appraiser's report with your records, along with Form 8283 and the details of each gift. For the general rules on gifts to charity, see charitable deduction percentage limits and charitable gift records and Form 8283.
Upload your documents and answer a few simple questions to start your return.
Sources: Sources: IRS, Publication 561 (Rev. December 2025), Determining the Value of Donated Property (https://www.irs.gov/pub/irs-pdf/p561.pdf); Form 8283, Noncash Charitable Contributions This is general information, not advice about your specific return.
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