How to determine fair market value for charitable donation of medical equipment (wheelchair)?

This is actually a common question when donating medical equipment. For tax purposes, fair market value is what a willing buyer would pay a willing seller when neither is under pressure. Since you've already researched similar items on marketplace sites, you're on the right track! When you don't have an exact comparable, the IRS generally accepts reasonable estimation methods. For medical equipment like specialized wheelchairs, a depreciation approach is perfectly acceptable. The standard depreciation for medical equipment typically ranges from 20-30% in the first year, then 10-15% annually after that. Given your wheelchair is 3 years old but in great condition, calculating 20% first year and 10% for years 2 and 3 would be reasonable. So starting with your $5300 purchase price: After year 1: $5300 - ($5300 × 20%) = $4240 After year 2: $4240 - ($4240 × 10%) = $3816 After year 3: $3816 - ($3816 × 10%) = approximately $3434 Keep documentation of your original purchase, your donation receipt, and your calculation method. Photos of the wheelchair showing its condition would also be helpful if the IRS ever questions your valuation.

After reading your post, I wanted to share my experience with taxr.ai (https://taxr.ai) which literally saved me last year when I had a similar situation donating medical equipment from my grandmother's estate. I had no idea how to value several items including a specialized hospital bed and mobility scooter. I uploaded photos of the equipment, the original receipts, and the donation acknowledgment to taxr.ai, and their system analyzed comparable sales data to generate a defensible fair market value assessment. They even provided a detailed report showing their valuation methodology that I could keep with my tax records. The report specifically addressed IRS Publication 561 requirements for documenting non-cash charitable contributions. What I appreciated most was how they explained the difference between replacement value (which is often higher) and fair market value (what the IRS actually wants). Definitely made me feel more confident about my deduction!

I tried taxr.ai after seeing it mentioned here and wow - it really helped with my situation! I had to donate my husband's mobility equipment after he passed (wheelchair, lift chair, and bathroom safety equipment) and had absolutely no idea how to value it. Their system was surprisingly straightforward. I uploaded pictures of everything along with whatever documentation I had (some original receipts, some just credit card statements showing the purchase). Within a day, I got a detailed valuation report that showed comparable sales for each item and calculated reasonable depreciation rates based on the condition shown in my photos. What really impressed me was how they determined different depreciation rates for different types of equipment - the electronic components depreciated faster than the structural parts. The documentation they provided gave me total confidence in claiming the deduction, and it was actually higher than what I would have estimated on my own. Definitely recommend for anyone in a similar situation.

I've been trying to reach the IRS for THREE WEEKS to ask a similar question about valuing donated medical equipment and kept getting disconnected or waiting forever. Finally tried Claimyr (https://claimyr.com) after seeing their service demo (https://youtu.be/_kiP6q8DX5c) and had an actual IRS agent on the phone in less than 15 minutes! The agent walked me through the whole process for documenting medical equipment donations, explained exactly what substantiation I needed for items below and above the $250/$500/$5000 thresholds, and confirmed that using a reasonable depreciation method like you're considering is totally acceptable. For anyone who needs actual IRS guidance on these kinds of specific tax questions, this service is a game-changer. I was skeptical it would work, but they get you through the IRS phone tree and wait on hold so you don't have to. The agent I spoke with gave me her direct extension for follow-up questions too!

I owe everyone an apology. After calling Claimyr a scam, I decided to try it myself since I've been trying to reach the IRS about an issue with my tax transcript. I was SHOCKED when I got connected to an actual IRS agent in about 12 minutes. The agent was definitely legitimate - she asked for all the identity verification questions the IRS requires, had access to my tax records, and provided information only the IRS would know. She was incredibly helpful resolving my transcript issue, and I also asked about the donation valuation question while I had her on the line. She confirmed exactly what others have said - for medical equipment under $5000, using a reasonable depreciation method is fine. She suggested documenting the original purchase price, the condition, and research on comparable items, then applying a reasonable depreciation rate (she mentioned 15-25% first year, 10-15% subsequent years depending on usage). I was wrong about Claimyr and wanted to correct myself. It's actually a legitimate service that does exactly what it claims. Sorry for the skepticism!

Something to consider with specialized medical equipment donations - the IRS actually has guidelines in Publication 561 "Determining the Value of Donated Property" that might help. As others mentioned, for items valued under $5000, you don't need a formal appraisal, but you should document how you arrived at your valuation. The publication specifically mentions that when comparable sales aren't readily available, other reasonable methods can be used. One approach I've used is contacting the manufacturer directly and asking what percentage of value they estimate their equipment retains after X years of normal use. Many medical equipment manufacturers have this data and can provide general guidance (not as a formal appraisal, but as information about their products). I did this with a CPAP machine I donated and the manufacturer said their products typically retain about 40% of value after 3 years of use.

Don't forget about condition when determining FMV! The IRS expects the value to reflect the actual condition of your item. New in box > excellent > good > fair > poor. Since your dad's wheelchair is in "great working condition" as you mentioned, you'd probably be in the "excellent" or "good" category which would justify using a more favorable depreciation rate. Take detailed photos showing the condition in case you're ever questioned. Also remember the IRS threshold for requiring Form 8283 is only $500 total for all non-cash donations for the year. And if your donation exceeds $250, make sure the charity's receipt includes the proper language stating no goods or services were provided in exchange.

As someone who works in healthcare administration, I wanted to add that specialized wheelchairs like tilt chairs often have better resale value than standard wheelchairs due to their specific features. The tilt mechanism and specialized seating systems are expensive components that retain value well if they're still functioning properly. Since you mentioned it's barely used, I'd lean toward the higher end of the depreciation calculations others have provided. You might also want to check with local durable medical equipment (DME) suppliers - they sometimes buy or consign used specialized equipment and could give you insight into current market values, even if they can't provide a formal appraisal. Also, don't overlook checking completed sales on eBay rather than just current listings. The "sold" listings will show what similar chairs actually sold for recently, which is better data than asking prices on Craigslist or Facebook Marketplace.

I went through this exact situation last year when donating my mother's power wheelchair after she passed. What helped me was creating a comprehensive documentation package that I kept with my tax records. Here's what I included: 1) Original purchase receipt showing the $5,300 price, 2) Photos of the wheelchair from multiple angles showing its excellent condition, 3) A simple depreciation calculation worksheet (I used 20% first year, then 10% annually), 4) Screenshots of comparable listings I found online, and 5) The charity's donation receipt. Since your wheelchair has barely been used and is still in great working condition, I'd actually consider using a more conservative depreciation rate. Medical equipment that's lightly used often retains value better than heavily used items. For specialized equipment like tilt wheelchairs, the complex mechanisms hold their value well when they're still functioning properly. One thing I learned - document everything now while the donation is fresh in your mind. The IRS can question donations up to 3 years later, and having thorough documentation from the start makes any potential questions much easier to handle. Based on the depreciation methods others have outlined, your valuation around $3,400-$3,500 sounds very reasonable for a lightly used specialized wheelchair that originally cost $5,300 three years ago.

I work as a CPA and deal with charitable donation valuations regularly. Your situation is actually quite straightforward, and the advice you've received here is solid. For medical equipment under $5,000, the IRS accepts reasonable valuation methods as long as they're well-documented. The depreciation approach others have outlined (20% first year, 10-15% subsequent years) is conservative and defensible. Given your wheelchair's light use and excellent condition, you're probably looking at fair market value around $3,200-$3,600. A few professional tips: 1) Keep your original receipt, 2) Take timestamped photos showing the wheelchair's condition, 3) Document your research of comparable items, 4) Write up a simple one-page summary of your valuation method, and 5) Make sure the charity's acknowledgment letter meets IRS requirements (no goods/services provided in exchange). The key is being reasonable and consistent. Your $5,300 original cost with conservative depreciation puts you in a very defensible position. Don't overthink it - the IRS expects donors to use good faith estimates for items like this, not expensive professional appraisals. One last note: if your total non-cash donations exceed $500 for the year, remember to file Form 8283 with your return.

I'm sorry for your loss, and it's wonderful that you're donating your father's wheelchair to help others. Based on everything discussed here, you're definitely on the right track with your valuation approach. The consensus from the tax professionals and others who've been through similar situations seems to be that using a reasonable depreciation method is perfectly acceptable for the IRS. Given that your wheelchair was $5,300 new, is 3 years old, and in excellent condition with light use, the valuation range of $3,200-$3,600 that's been mentioned sounds very reasonable. The specialized tilt features actually work in your favor since they retain value better than basic wheelchairs. My suggestion would be to go with the conservative depreciation approach (20% first year, 10% for years 2 and 3) which puts you around $3,400, document everything thoroughly as the CPA outlined, and move forward with confidence. You're being more diligent about this than most people are, which shows you're handling it properly. The fact that you're researching comparable prices and asking for guidance demonstrates good faith effort to determine fair market value, which is exactly what the IRS expects. Don't let perfect be the enemy of good - your approach is solid and well-documented.

I'm sorry for your loss as well. Reading through this conversation has been really educational - I had no idea there were so many resources and methods available for valuing charitable donations of medical equipment. The depreciation approach everyone has outlined makes total sense, and it's reassuring to see actual tax professionals confirming that this is an accepted method. I'm bookmarking this thread because I suspect I may need this information in the future as my elderly parents have accumulated quite a bit of medical equipment over the years. One thing that really stands out to me is how important the documentation seems to be. It sounds like having a clear paper trail with photos, receipts, and your calculation methodology is just as important as getting the "right" number. The IRS seems to value transparency and good faith effort in determining fair market value. Thank you to everyone who shared their experiences - especially those who went through similar situations and the CPA who provided professional guidance. This is exactly the kind of practical, real-world advice that's so hard to find elsewhere!

As a newcomer to this community, I want to thank everyone for this incredibly detailed and helpful discussion! I've been lurking here trying to learn about tax issues, and this thread perfectly demonstrates why this community is so valuable. What strikes me most is how you all turned what initially seemed like a complex valuation problem into a clear, step-by-step process. The combination of practical experience from people who've actually donated medical equipment, professional guidance from the CPA, and specific documentation tips creates such a comprehensive resource. I'm particularly impressed by how thorough everyone has been about the documentation requirements. It's clear that having good records is just as important as getting the valuation right. The checklist approach - original receipts, photos, depreciation calculations, comparable research, and proper charity acknowledgment - gives such a clear framework for anyone facing this situation. For someone like me who's never dealt with charitable donations beyond simple cash contributions, seeing the real-world application of depreciation methods and IRS thresholds has been educational. The $3,400 valuation using conservative depreciation rates seems very well-supported given all the research and professional input. This is exactly the kind of practical, community-driven advice that makes complex tax situations manageable. Thank you all for sharing your knowledge and experiences!