Is donating equipment tax deductible?

Yes, donating equipment to a qualified charity is generally tax deductible, but you must itemize deductions to claim it, and the deduction is based on the equipment's fair market value at the time of the gift, not its original purchase price.

A few rules determine how much you can actually claim and what paperwork you need:

• The recipient must be a qualified organization (typically a registered nonprofit); donations to individuals never qualify.
• For donations over $500, the IRS requires you to file Form 8283 with your tax return.
• For donations valued over $5,000, the IRS requires a qualified appraisal to substantiate the fair market value claimed on Form 8283.
• Fully depreciated business equipment or property with a low tax basis may yield a smaller deduction than the equipment's market value would suggest, since special rules apply to depreciated business property and ordinary income property.
• Contributions of $250 or more also require a contemporaneous written acknowledgment from the receiving charity.

The fair market value determination is where most donors get tripped up. It has to reflect what the equipment would actually sell for in its current condition, not the price you paid years ago or a rough guess. That's the piece a qualified equipment donation appraisal exists to document: a defensible, USPAP-compliant valuation with the methodology spelled out, so your Form 8283 filing holds up if the IRS asks questions later.

Because the appraisal requirement kicks in at the $5,000 threshold, it's worth getting equipment valued properly before you file, rather than estimating and hoping it doesn't get flagged. Your tax advisor can confirm exactly how the deduction applies to your specific situation, including any AGI limitations, but the appraisal itself is something we prepare directly. For a closer look at the $5,000 appraisal threshold and how to prepare equipment for a donation valuation, browse our equipment donation appraisal guides.