In discussing charitable contribution deductions, your textbook throws around the phrase “fair market value” (FMV) a lot. (Okay, again we’re not talking about cash here, since a dollar is always worth a dollar.) But what the textbook doesn’t do is address exactly how you’re supposed to determine FMV for any contributed pro-perty without an obvious or objectively determinable “price” – say, used clothing or used household items, the kinds of things that people typically would donate to Goodwill. So . . . as to that kind of used property donated to charity, what are your thoughts about what kind of “how to” valuation advice you will give your clients?
In discussing charitable contribution deductions, your textbook throws around the phrase “fair market value” (FMV) a lot. (Okay, again we’re not talking about cash here, since a dollar is always worth a dollar.) But what the textbook doesn’t do is address exactly how you’re supposed to determine FMV for any contributed pro-perty without an obvious or objectively determinable “price” – say, used clothing or used household items, the kinds of things that people typically would donate to
So . . . as to that kind of used property donated to charity, what are your thoughts about what kind of “how to” valuation advice you will give your clients?
FMV or Fair market value refers to the actual price at which a property can be sold in the open market which has been agreed upon mutually by the buyer and seller based on the existing market conditions.
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