Ordinary income property
Donated property whose sale would not have produced long-term capital gain. Its deduction is generally reduced below fair market value.
Publication 526 separates donated property into categories and explains that for some of them the deduction must be reduced below fair market value. Property that would not have produced long-term capital gain if sold, including inventory and property held for a short period, is generally in that group.
Read the publication's section on giving property before claiming full fair market value on anything unusual. For used household goods the practical outcome is the same either way, because their fair market value is already well below cost.
Sources
- Publication 526 (2025), Charitable Contributions, full textIRS, IRS publication
The rule as published, not tax advice; confirm anything that affects a return with a tax professional.
Related: Capital gain property, Fair market value (FMV), AGI limit (percentage limitation), Automatic revocation. Browse every term.
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.
