What determines the appraised value of clothing?
Designer or brand, condition, rarity and age, fabric and craftsmanship, provenance, and current resale demand. For vintage or historically significant garments, documented provenance can materially increase value and is addressed directly in the report. Ordinary used clothing is analyzed against the actual secondary market, which behaves very differently from designer or collectible pieces.
Which value standard does a clothing appraisal use?
It depends on the purpose: fair market value for IRS donations, estate tax, and probate; replacement value for insurance scheduling; and actual cash value, which applies depreciation, after a loss. These are not interchangeable, and the report states which standard the conclusion reflects.
When does donating clothing require a qualified appraisal?
When the claimed deduction for an item or group of similar items exceeds $5,000, the IRS requires a qualified appraisal with Section B of Form 8283 attached. The appraisal must support fair market value as of the donation date, not retail replacement value.
Are retail or eBay listing prices a fair guide to clothing value?
No. Asking prices and insurance replacement estimates reflect different markets from what a willing buyer actually pays for used garments. A related error is lumping ordinary used clothing together with designer or provenance-backed pieces, which can overstate or understate the total materially. We base conclusions on comparable sales in the relevant secondary market.
Does everyday clothing in an estate need a formal appraisal?
Usually not, unless the wardrobe includes designer, vintage, or collectible pieces that materially affect estate value. Form 706 is generally required only when the gross estate plus adjusted taxable gifts exceeds the basic exclusion amount ($13.99 million for 2025), but state thresholds vary widely, and executors often need defensible values for notable garments even below federal thresholds.