Guides · Furniture disposition

Office Furniture Liquidation & Donation Guide

Liquidation, donation, and disposal — and the IRS rules that apply if you deduct a furniture donation.

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Short answer: Furniture that isn't moving goes to liquidation (large, valuable inventories), donation (deductible at fair market value, Form 8283 over $500, appraisal over $5,000), or disposal. Decide during the same inventory process that plans the new office, not after.

Three paths for furniture that isn't moving

Condition and volume decide the path

Furniture that stays behind after a move usually follows one of three routes: liquidation through a dealer or auction, donation to a nonprofit, or disposal. The right choice depends mainly on condition and volume — a handful of worn pieces usually isn't worth liquidating, while a large inventory of newer systems furniture can carry enough resale value to pursue before falling back on donation or disposal.

Donation deduction thresholds

Over $500/year

IRS Form 8283 required

Over $5,000 (single org)

Qualified appraisal required

Appraisal timing

No earlier than 60 days before donation

Valuation basis

Fair market value, not original cost

When liquidation makes sense

Large inventory, real resale value

Liquidation companies buy used commercial furniture in bulk, typically paying a fraction of the original cost and handling removal themselves. This works when the inventory is large enough to attract a buyer and the timeline allows for appraisal and pickup. Small quantities or poor condition make it a poor fit — the coordination often costs more than you'd get back.

Donation and the tax deduction that comes with it

Fair market value, documented

Donating to a qualified nonprofit can yield a tax deduction equal to fair market value — the price a willing buyer would pay a willing seller, not what you originally paid. Non-cash charitable donations totaling more than $500 in a year require IRS Form 8283. Donations from a single organization that together exceed $5,000 need a qualified appraisal done no earlier than 60 days before the gift, per IRS Publication 561. For smaller donations, a receipt from the charity listing the items plus your own fair-market estimate is usually enough.

What to keep for the tax file Keep a record of each item, the date, the charity, and how you determined fair market value. A receipt plus your own notes on valuation method is the minimum paperwork to hang onto, even if you're below the $500 or $5,000 thresholds.

Timing this against the move

Decide during the inventory, not after

Deciding what to keep, liquidate, donate, or throw away should happen during the same inventory process that plans the new office, not after everyone has already moved in. See our decommissioning service page for how this fits into the broader move-out process.

Frequently asked questions

What are the three options for furniture that isn't moving?

Liquidation (sale to a dealer or auction), donation to a nonprofit, or disposal — the right choice depends mainly on condition and volume.

When does liquidation make sense?

When there's enough inventory to interest a buyer and the timeline allows for appraisal and pickup. Small quantities or poor-condition items usually cost more in coordination than they'd recover.

How does the tax deduction for donated furniture work?

Donations are deductible at fair market value. Total non-cash donations over $500 in a year require IRS Form 8283; donations from a single organization over $5,000 require a qualified appraisal per IRS Publication 561.

What records should I keep?

The item description, donation date, receiving organization, and how fair market value was determined — a charity receipt plus your own valuation notes, regardless of whether you cross the $500 or $5,000 thresholds.

Sources

Published 2026-09-06. Reviewed against sources current as of that date — see how we rate. This is general information, not tax advice — consult a tax professional for your specific situation.