Eyeglasses donation - Fair Market Value

Value is probably near zero. Prescription lenses are worth nothing, and a peek at eBay listings shows me used designer, antique, and vintage frames like $25 tops. For value of common items, picture yourself shopping at a yard sale. Offer $200 for these glasses, and the homeowner might give you the ratty lawn mower and the baby stroller as a thank you! The other items you said are worth $3000 total need to be valued realistically also, and this question hints you may be a bit optimistic in these matters. Fred F.

snipped-for-privacy@gmail.com posted:

Well, you should first understand that you can only deduct the Fair Market Value (FMV) -- which the IRS defines as what that item would bring if sold "as is" on the open market. For eyeglasses, that would mean you have to compare with the frames which are sold in drug stores/discounted for any prescription lens you required (which would have to be replaced, since the likelihood of someone needing the exact same refraction as you, is infinitesimal). My guess would be more like $5 - $10, _max. You're in for a rude awakening at audit time, if you go in with the valuation technique you described. What a nationally-franchised store receives at retail for a product bears _no_ resemblance to FMV for the same product in a thrift shop. With your technique of valuation, you would be chewed up and spit out -- and if you've deducted $3,000 "worth," as you suggest, you'll likely be receiving a tax deficiency determination for at least $400 up to $1,000+ (depending on your bracket). One suggestion: Visit a thrift shop -- one operated by Goodwill Industries, for example. See how they're pricing equivalent goods. At the very least, go to a Dollar Store. See how ordinary people are able to buy an incredible assortment of goods for $1 - flat pricing. Bill

snipped-for-privacy@gmail.com (Jason) posted a question on valuation of property donated. I neglected to add the standard reference which will answer most of his questions: Pub 561 - Household Goods. This has information on valuation of household goods such as furniture, appliances and linens. But Fair Market Value is the key factor to keep in mind, always. Bill

I think the FMV is close to zero for used eyeglasses. Donated eyeglasses are not sold, they are given to the needy. Find a market if you can to determine the value. I don't believe one exists except for antique frames or designer frames. Try selling your glasses on eBay to find the value. FMV is what a willing seller will accept from a willing buyer. Don in Colorado

You might ask a charity like New Eyes for the Needy which accepts donations of used eyeglasses.

-- D.F. Manno | snipped-for-privacy@mail.com I don't trust organized anything: teams, religions, corporations. People in enterprise together consistently do two things: promulgate the enterprise, no matter what, and protect miscreants in their midst. (Alfred Lubrano)

Cost and lifetime have nothing to do with fair market value. The fair market value is what you could sell them for. How much would they sell for in a thrift shop, or if you listed them on eBay? Probably not much, especially if they are made to your personal prescription.

wrote

Why do you think a pair of glasses only last 1 - 2 years? Just because ~your eyes~ deteriorate doesn't mean the glasses are bad. A few nicks and scratches yes, but the lens doesn't go out of focus. Hinges are the most apt to cause concern. In any event, ask your optomitrist what they are worth.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

The last time I got glasses it was hard to find frames for under $200. I imagine that if someone wanted to collect used frames for resale, he could get at least half the original price. Stu

Don't forget that the charitable deductions are limited to the lower of FMV or basis. Others have given opinions about FMV but if your glasses are fully covered or reimbursed through insurance, you may have zero basis in them.

Thank you Paul-

Prescription glasses are just that- you can't buy them at a thrift store (I called a few and they won't take the items). That leaves the FMV in limbo for determination by that method. I applied what I believed to be a logical step in the reduction of prices- if there is no market for an item and said item can only be prescribed... that means the price will be fairly high. In one donation site it quoted a FMV of 195$- still sounds high, but that's why I'm searching. The $3K is realized at the thrift shop pricing for items. There is ALOT of junk in this house that has been 'recommended' for immediate removal by my wife. Heh heh heh.. Thank you again- I'll try contacting a few more places for additional information. Jason

Thank you Paul-

Prescription glasses are just that- you can't buy them at a thrift store (I called a few and they won't take the items). That leaves the FMV in limbo for determination by that method. I applied what I believed to be a logical step in the reduction of prices- if there is no market for an item and said item can only be prescribed... that means the price will be fairly high. In one donation site it quoted a FMV of 195$- still sounds high, but that's why I'm searching. The $3K is realized at the thrift shop pricing for items. There is ALOT of junk in this house that has been 'recommended' for immediate removal by my wife. Heh heh heh.. Thank you again- I'll try contacting a few more places for additional information. Jason

"San Diego CPA" wrote

I don't agree with that as it stands. If I pay the premiums, then by default, I paid for the glasses. So I have basis in them of some amount.

Now, if the glasses or the insurance premiums were deducted as a medical expense on Schedule A, or bought pre-tax through a medical reimbursement plan, then I don't see where there would be any room to take a second deduction just because your eyes got worse.

wrote

There are groups that take glasses. Lions Clubs for starters. A Google search turns up more.

In fact, May is "Recycle for Sight" month. Contact your local chapter of Lions International.

replying to purduephotog, Bo Bender, CPA wrote: Can you sell them for $175-$200 to a willing buyer ??? I think not.