Inventory Appraisal
Business inventory appraisal services for IRS Form 8283 filings and non-cash charitable deductions, prepared in accordance with USPAP. Legacy Donation Appraisers values retail merchandise, excess stock, raw materials, and finished goods donated nationwide.
- USPAP-Compliant & IRS-Qualified Appraisals
- IRS Form 8283 included
- Secure a tax deduction for your non-cash charitable donations
BUSINESS INVENTORY
Why Excess Inventory Makes a Smart Donation
Excess, discontinued, or slow-moving inventory sitting in a warehouse often costs a business money in storage and carrying costs long before it ever sells at full price. Donating that stock to a qualifying charity instead of liquidating it at a steep discount can convert a shrinking asset into a deduction based on its fair market value.
The IRS treats inventory donations differently depending on entity type. A C-corporation donating inventory for a use consistent with a charity's mission may qualify for enhanced deduction rules under Section 170(e)(3), while other entities claim the standard fair-market-value deduction. Either way, our guide to IRS Form 8283 covers the filing requirements once the claimed value exceeds $5,000.
This comes up most often with retailers clearing seasonal stock, manufacturers retiring a discontinued product line, or distributors offloading overstock after a contract ends.
INVENTORY CATEGORIES
What Counts as Donated Inventory
Inventory appraisals cover goods at every stage of the supply chain. Our appraisers match the right market and cost data to each category.
- Retail merchandise inventory
- Wholesale inventory
- Excess and overstock inventory
- Closeout merchandise
- Raw materials and supplies
- Finished goods inventory
- Obsolete and returned goods inventory
- Food, beverage, and pharmaceutical inventory
- Electronics and automotive parts inventory
- Jewelry, art, book, and building materials inventory
Inventory Donations Usually Go Directly to a Qualifying Charity
Legacy Donation Appraisers appraises inventory donated straight to nonprofits and, for C-corporations, through the enhanced deduction rules for a use consistent with the charity's mission.
Direct Gift to a Nonprofit
Merchandise transfers directly to the charity or a distribution partner, with the appraisal documenting fair market value at the time of transfer.
Enhanced C-Corporation Deductions
Inventory donated for a use related to the charity's mission, such as feeding or clothing those in need, may qualify for a deduction above cost basis under Section 170(e)(3).
Product Donation Programs
Some donors route inventory through established donation and redistribution programs, which still require the same appraisal and Form 8283 documentation.
HOW IT WORKS
How We Appraise Donated Inventory
- 01
Inventory Details & Documentation
Share item lists, quantities, cost records, and any purchase invoices for the inventory being donated.
- 02
Market & Cost Research
We research comparable sales of similar inventory, current wholesale and liquidation pricing, and replacement cost data.
- 03
Condition & Marketability Review
We assess obsolescence, shelf life, damage, and current demand, since these materially affect what donated inventory is actually worth.
- 04
USPAP-Compliant Report
We prepare a written appraisal report stating fair market value and the methodology used to reach it.
- 05
Form 8283 Part IV Completed
Our appraiser signs the Appraiser Declaration in Part IV so your donation is ready to file with Section B.
CREDENTIALED APPRAISERS
Credentialed by ISA, ASA, CAGA & AAA
Every inventory appraisal is prepared in accordance with USPAP by appraisers holding credentials with recognized organizations.
INVENTORY DONATION QUESTIONS
Inventory Donation, Explained
Do I need a qualified appraisal to donate business inventory?
Yes. When the fair market value of donated inventory exceeds $5,000, the IRS requires a qualified appraisal prepared in accordance with USPAP. The donor completes Section B of Form 8283, and our appraiser completes and signs Part IV, the Appraiser Declaration.
Do C-corporations get a bigger deduction for inventory donations?
C-corporations donating inventory to certain charities, for a use consistent with the charity's mission such as feeding or clothing those in need, may qualify for an enhanced deduction above cost basis under Section 170(e)(3). A qualified appraisal still documents the value supporting that claim.
How is fair market value determined for obsolete or discontinued inventory?
We weigh what the specific goods would actually sell for in their current market, factoring in obsolescence, shelf life, packaging condition, and demand, rather than the original wholesale or retail price.
Do I need to donate my entire inventory, or can I donate a portion?
You can donate any portion of your inventory. A partial donation still requires the same documentation: item lists, quantities, and cost records for exactly what is being transferred to the charity.
How much does an inventory donation appraisal cost?
Fees are quoted as a fixed fee before any work begins, never hourly. Scope depends on the number of SKUs, categories involved, and how complete your inventory records are.
How long does an inventory donation appraisal take?
Turnaround depends on the size of the inventory list. Smaller donations are often completed within one to two weeks; larger inventories can take two to four weeks, plus additional time if an on-site count is needed. Tell us your deadline and we'll confirm up front whether we can meet it.
Request Your Inventory Appraisal
Scoped to your inventory, quoted as a fixed fee.