Property Donations

Are property donations to charity deductible?

In general, you can deduct the fair market value or FMV of the property you give to a charitable organization.

What is fair market value (FMV)?

The fair market value is the amount of money a willing buyer would pay for the property having all relevant information. Fair market value is determined on the date of the gift. There are penalties for overstating the value or adjusted basis of donated property.

Gift of appreciating property

If the property has increased in value during the time you owned it, you can generally deduct your basis in it (usually what you paid for the property) or the property's fair market value on the date of the gift.

For example, if you bought a real property 7 years ago for $10,000 and then donated it to a church when it was worth $20,000, you can generally deduct $20,000 for that donation of real property, not he smaller amount which you paid for.

Gift of depreciating property

If the property has decreased in value during the time you owned it, you usually deduct its fair market value. Used clothing, appliances, furniture and books are examples of items that are worth only a fraction of what you originally paid for them.

What property donations are not tax deductible?

You cannot claim a tax deduction for clothing or household items you donate after August 17 of the tax year unless the clothing or household items are in good used condition or better. However, you can claim a tax deduction for a charitable contribution of an item of clothing or household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your tax return.