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An item of clothing that is not in good used condition or better for which you claim an income tax charitable contribution deduction of more than $500 requires a qualified appraisal and a completed Form 8283. See Deduction over $500 for certain clothing or household items, later.
Determining fair market value Since stock prices can go up or down on any given day, the fair market value of a gift of stock is the average between the high and low share prices on the date the gift is given.
Ing to the Internal Revenue Service (IRS), a taxpayer can deduct the fair market value of clothing, household goods, used furniture, shoes, books and so forth. Fair market value is the price a willing buyer would pay for them.
Stock donations are valued at the average value on the date of receipt. The average value is determined by taking the market high and market low, adding them together and dividing by two. The average value can only be determined after markets close.
Determining 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.