The short answer
The IRS defines fair market value as the price a willing buyer and a willing seller would agree on, with neither forced to act and both having reasonable knowledge of the facts. Publication 561 says the sales prices of similar property are often important in determining it, and it weighs each sale by how similar the piece is, how close the sale was to your valuation date, whether the sale was at arm’s length, and which market it came from.
How much paperwork you need depends on the size of the claim, measured per item or per group of similar items. The IRS ties the forms and the appraisal to that size, so a defensible value comes first and the form follows.
The forms that apply
| Form or rule | What it asks for | Read more |
|---|---|---|
| Form 8283 | Noncash Charitable Contributions. Required for noncash gifts over $500. Section A covers over $500 up to $5,000. Section B covers over $5,000. | Our Form 8283 guide |
| Qualified appraisal | A claim over $5,000 needs Section B and a qualified appraisal. For art, Publication 561 adds that a claim of $20,000 or more means attaching the appraisal, and an item appraised at $50,000 or more can be put to the IRS for a Statement of Value before you file. | Our year-end valuation guide |
| Timing | The appraisal must be dated no earlier than 60 days before the gift and no later than the return’s due date, including extensions. To count for a tax year, the gift has to be completed by December 31. | Our year-end valuation guide |
What to gather
- A description of the piece with clear photos, including any marks, serial numbers, box and papers.
- When and how you acquired it, and what you paid, since Form 8283 asks for them.
- The name and address of the charity and the date you handed the piece over.
- Any earlier appraisal or insurance schedule. Keep it, but note that an insured value is not fair market value.
- Comparable sold prices for the same model or reference, with sale dates.
Worked example: a Rolex Daytona 116500LN given to a museum foundation
Suppose you give a stainless steel Rolex Daytona, reference 116500LN, on 31 October 2026. Here is what the same reference sold for at auction in the twelve months before that date.
| Sale date | House | Sold price (USD) | Sold in | Lot |
|---|---|---|---|---|
| 10 May 2026 | Sotheby's | $39,537 | CHF 30,718 | View |
| 14 Apr 2026 | Christie's | $30,814 | HKD 241,300 | View |
| 31 Mar 2026 | Sotheby's | $35,840 | USD 35,840 | View |
| 31 Mar 2026 | Sotheby's | $32,000 | USD 32,000 | View |
| 12 Mar 2026 | Phillips | $30,763 | CHF 24,130 | View |
| 12 Mar 2026 | Sotheby's | $31,081 | HKD 243,200 | View |
| 10 Dec 2025 | Sotheby's | $31,750 | USD 31,750 | View |
| 10 Dec 2025 | Sotheby's | $27,940 | USD 27,940 | View |
The 8 most recent of 14 matched sales are shown. The summary above uses all 14.
How to read this. These are sold lots only, not estimates and not asking prices, matched on the model or reference. The USD figure is the price the house recorded, converted at a rate near the sale date; the "Sold in" column shows the original currency. Whether a recorded price includes the buyer’s premium depends on the house. A lot listed under two links is counted once. Condition, completeness, dial and provenance move individual prices, so a range is a starting point and not an opinion of value. Figures pulled from our data on 11 November 2026.
This is the kind of evidence an appraiser works from. The range shows where the market actually cleared, and the dates show how recent it is. It does not replace the appraisal, which has to account for the condition and completeness of your particular watch.
Two ways to go from here
See what it sold for
The free Price Check shows real sold prices for the same model, with dates, houses and a low, median and high.
See what it sold forNeed it in writing?
Open the ALT/FNDATA Wealth app and tell us the piece and what it is for.
Request a valuation report or a qualified appraisalTools that fit
Frequently asked questions
What is a donated watch or painting worth for taxes?
For a charitable gift the value is its fair market value on the date of the gift: the price a willing buyer and a willing seller would agree on. The IRS says the sales prices of similar property are often important in determining it. Your advisor confirms how that value feeds your deduction.
Do I need an appraisal to donate a collectible?
If you claim more than $5,000 for an item or a group of similar items, you complete Form 8283 Section B and need a qualified appraisal. For a claim of more than $500 up to $5,000 you complete Section A, which does not call for the formal qualified appraisal. Confirm the specifics with your appraiser and CPA.
Can I use my insurance appraisal for a donation?
Usually not as the value. Publication 561 says, using jewelry as its example, that an insured value does not reflect what a willing buyer and seller would pay, and reflects only replacement cost.
When does the appraisal have to be dated?
No earlier than 60 days before the date of the gift and no later than the due date, including extensions, of the return on which the deduction is first claimed. The gift itself has to be completed by December 31 to count for that tax year.
How can I see what similar pieces sold for?
Use the free Price Check to see real sold prices for the same model, with dates, houses and a low, median and high.
Sources
- IRS Publication 561, Determining the Value of Donated Property (Rev. December 2025)
- IRS Instructions for Form 8283, Noncash Charitable Contributions (Rev. December 2025)