The IRS states that
determining the value of donated property would be a simple matter if you could
rely only on fixed formulas, rules, or methods. Usually it is not that simple.
Using such formulas, etc., seldom results in an acceptable determination of
FMV. There is no single formula that always
applies when determining the value of property. This is not to say that
a valuation is only guesswork. You must consider
all the facts and circumstances connected with the property, such as its
desirability, use, and scarcity.
Since FMV means the
value of the sale if you had sold it to a customer, if you have documentation
that can substantiate your valuing of the donated items, you can use the FMV that you feel is most appropriate. Usually,
the safest way to determine the FMV is to stay
conservative and use the lowest FMV but you could also use an
average of various fair market valuations if there are various outlets for the
sale of the inventory. Just remember to
keep a record of how you determined this FMV in case the IRS inquiries about
this donation.
For more information
from the IRS about Charitable donations and valuing your donations, please
refer to the following links:
https://www.irs.gov/publications/p561/ar02.html#d0e849
https://www.irs.gov/publications/p526/ar02.html#en_US_2014_publink1000229745
Here is an
additional link to TurboTax ItsDeductible which you may also find helpful:
https://turbotax.intuit.com/personal-taxes/itsdeductible/
