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How do I calculate the cost adjusted basis in donated property (like clothes, household items)? Can I just multiply my donation amount by a certain amount? You would divide the donated value by . 3 in this scenario and that would give you the cost basis.
3 FMV factors Cost or selling price. The cost of the item to the donor or the actual selling price received by your organization may be the best indication of the items FMV. Comparable sales. The sales price of a property similar to the donated property often is critical in determining FMV. Replacement cost.
Determining a Donated Items Fair Market Value Goodwill says that the dollar values listed on their website, or 30% of the items original purchase price, should be a close estimate, but this assumes its not in awful condition.
The main objective is to determine a fair market value for each book. New books generally can be assigned a value of $3 to $5 apiece, used books somewhat less, depending on condition. The IRS might look at a given situation to determine the reasonableness of the price youve assigned.
The IRS requires an item to be in good condition or better to take a deduction. Our donation value guide displays prices ranging from good to like-new. To determine the fair market value of an item not on this list below, use this calculator or 30% of the items original price.
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People also ask

Each bag of clothing is unique and should be valued at the fair market value of the clothes in the bag. Generally speaking, your can deduct $15-$45 for a bag of clothes.
The IRS recommends that you consider all relevant factors, including: the items cost or selling price. sales of comparable items. the items replacement cost, and. an expert opinion.
Fair market value is the price a willing buyer would pay for them. Value usually depends on the condition of the item. By law, a charity cannot tell you what your donated items are worth.

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