What are the IRS Requirements for Non-Cash Charitable Donations?

• A taxpayer is generally allowed to deduct the lower of the cost basis or the fair market value of a non-cash item that is donated.
• Non-cash items generally consist of clothing, household, furniture, and other personal goods.
• Donated items need to be in "good" condition or better in order to qualify for a charitable donation
• Fair market value is generally assumed to be the consignment or thrift store value for an item.
• The taxpayer is required to document the name of the charity, the date of the donation, and a detailed description of the donated items.
• If the donation is valued at over $250 the taxpayer is required to have a written acknowledgement from the charity that supports the donation.
• Donations valued at over $5,000 are required to have a written appraisal.
• IRS Publication 526 outlines the rules for charitable donations.
• IRS Publication 561 outlines the rules for valuing donated property.