Dear kent_on_cape_cod-ga;
Thank you for allowing me an opportunity to answer your interesting
question. The IRS doesn't have an exact formula or method for you to
establish fair market values, so what you write down is completely
subjective. The IRS does, however, offer vague guidelines. These
guidelines for determining fair market value of non-cash contributions
are set out in these official IRS documents:
0200 Publ 561 (PDF) Determining the Value of Donated Property (101.2K) PDF
http://www.irs.gov/app/scripts/redirectPDF.jsp?dest=/pub/irs-pdf/p561.pdf
1098 Form 8283 (PDF) Noncash Charitable Contributions (31.8K) PDF
http://www.irs.gov/app/scripts/redirectPDF.jsp?dest=/pub/irs-pdf/f8283.pdf
As you can clearly see, donating books (non-cash
donations/contributions) to charities can indeed be profitable in
terms of added tax relief or tax credit. What I am telling you here is
public knowledge but it is not meant in any way to replace or dispute
the advice of an accountant, lawyer or tax preparation professional. I
highly recommend that you consult you tax specialist in or to
determine these and other deductions you may qualify for as a result
of your donations. (There you have the disclaimer, now, here goes)
To determine the ?value? of the donation, three things must be considered:
THE KIND OF BUSINESS OR ORGANIZATION RECIPIENT BELONGS TO.
If the recipient is a non-profit organization with 501(c)(3) status,
donors may be able claim the "fair market value" of books as a
charitable donation on income tax returns. Please check with your
accountant or tax adviser as to your particular situation.)
THE TYPE OF BOOKS BEING DONATED
Obviously books of greater value or greater marketability are
appraised much higher than off-the-shelf books.
AND THE ?FAIR MARKET VALUE? OF THE BOOKS BEING DONATED
Fair market value is the price a willing buyer would pay a willing
seller for property, when neither has to buy or sell, and both have
knowledge of all the relevant facts. If you claim a deduction of more
than $500, you MUST fill out FORM 8283 and attach it to your income
tax return. If the deduction is more than $5000, you must get an
appraisal. Simply read the rules in the booklet, which accompanies
your IRS tax return form, and you?ll see how easy and uncomplicated it
is.
As I mentioned, a professional book appraiser can determine the fair
market value of your books. Alternatively, most booksellers also
provide appraisal services. They will examine the books and issue you
an appraisal statement or receipt attesting to their learned opinion
of the fair market value of the books.
Here is an excellent explanation about how donating books works toward
providing a measurable tax credit:
BOOK APPRAISALS
Book appraisals and tax credit
http://www.booksappraised.com/index.cfm?siteid=75&p=102
As you?ve now learned from this article, medical books, law books and
the like are well sought after and normally produce a significant
?fair market value? per book. In the same manner, off-the-shelf books
are usually appraised at the lowest values because they are more
common and usually less appreciated. In order to be especially
thorough in both your tax records and insuring that you receive fair
credit for your donation, you can have your non-cash gift appraised
for tax deduction purposes. This way you can be free of concern when
filing your taxes that you have claimed precisely the tax credit that
you have legally earned through your donation. There are a number of
professional appraisal specialists out, such as this one, who provide
these types of services and can also advise you further in this area.
SCHOLARLYBOOKS.COM
http://www.scholarlybooks.com/service.html
The Internal Revenue Service recognizes non-cash gift donations to
charitable organizations. Currently, a taxpayer must file Form 8283,
"Non-cash Charitable Contributions," (Section A) if the fair market
value of the donation exceeds $500. If a deduction of more than $5000
is claimed for an item or a group of similar items donated, the
taxpayer must also complete section B of the form.
Here are some of the forms and pertinent information about non-cash donations:
1098 Inst 8283 (PDF) Instructions (37.7K) PDF
http://www.irs.gov/app/scripts/redirectPDF.jsp?dest=/pub/irs-pdf/i8283.pdf
1040A ? Itemized Deductions
http://www.irs.gov/pub/irs-fill/f1040sab.pdf
I hope you find that my research exceeds your expectations. If you
have any questions about my research please post a clarification
request prior to rating the answer. Otherwise I welcome your rating
and your final comments and I look forward to working with you again
in the near future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga - Google Answers Researcher
INFORMATION SOURCES
INTERNAL REVENUE SERVICE
http://www.irs.ustreas.gov/prod/cover.html
PROFESSIONAL BOOK APPRAISALS
http://www.booksappraised.com/index.cfm?siteid=75&p=102
CHARITABLE CONTRIBUTIONS OF PROPERTY
http://www.wendletonaccounting.com/Charitable.htm
THE NATIONAL SPORTING LIBRARY
http://www.nsl.org/donori.htm
DUKE UNIVERSITY
?GIFTS: Books and Collections: Information For Prospective Donors?
http://www.lib.duke.edu/colldev/giftplcy.htm
MSFINANCIALSAVVY.COM
?Don't Short-change Yourself!?
http://www.msfinancialsavvy.com/archive/donate_for_taxes.html
SCHOLARLYBOOKS.COM
http://www.scholarlybooks.com/service.html
BOOK APPRAISALS
http://www.booksappraised.com/index.cfm?siteid=75&p=102
SEARCH STRATEGY
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Books, noncash contributions, non-cash contributions, IRS, tax
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