Fair market value (FMV)
The price property would sell for on the open market between a willing buyer and a willing seller, both informed and neither under compulsion.
Publication 561 defines it directly: "FMV is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts."
Three things are not fair market value: what you paid, what the item is worth to you, and what it would cost to replace new. For used household goods the honest number is closer to what the item would fetch second-hand, which is usually a small fraction of the original price.
Fair market value is a range, not a point. Every value DeductiBee suggests is published as a range by condition tier with the source attached, because a single confident figure would imply a precision the underlying evidence does not support.
Sources
- Publication 561 (rev. December 2025), Determining the Value of Donated Property, full textIRS, IRS publication
- Publication 561, Determining the Value of Donated PropertyIRS, IRS publication
- Publication 526 (2025), Charitable Contributions, full textIRS, IRS publication
Definitions describe the rule as published. They are not tax advice, and almost every threshold above has an exception attached to it in the underlying publication. Confirm anything that affects a return with a qualified tax professional.
Related terms
FMV factors
The four considerations Publication 561 lists for arriving at fair market value: cost or selling price, comparable sales, replacement cost, and expert opinion.
Thrift shop value
What buyers of used items actually pay in consignment or thrift shops, which Publication 561 treats as an indication of value for used clothing.
Condition tier
The grade assigned to a donated item, which selects a value range. DeductiBee uses Like new, Good, and Fair, and deliberately has no lower tier.
Good used condition or better
The minimum condition standard for deducting donated clothing and household items, with a narrow exception above $500 backed by a qualified appraisal.
Values with the source attached
DeductiBee applies a cited fair-market-value range to everything you donate, keeps the photo with the record, and exports a Form 8283 worksheet when you file.
