I am an IRS-credentialed Enrolled Agent. That is, I'm a professional tax preparer who has passed a series of exams and I am admitted to practice before the IRS. For a donation that large, he couldn't just use fair market value to determine the amount of his charitable contribution deduction. Any donation valued at over $5,000 requires an appraisal and the completion of IRS Form 8283.
Of course, that assumes he'll even be able to itemize deductions, which is going to be situationally dependent. If the OP is married and he and his spouse will both be 65 or greater and file a joint tax return, their standard deduction for Tax Year 2025 will be $33,200 ($30k for MFJ, $3,200 extra for both over 65). Assuming their house is paid off and there is no mortgage interest, and they max the $10k SALT cap, and they don't have medical expenses in excess of 7.5% of their AGI, he'd still have $23,200 of standard deduction before it would help to itemize. That $23,200 eats up A LOT of the value of those guns, so he wouldn't really get that much of a tax benefit for donating them. (That's just shy of an average $2,000 for each of the 12 guns he listed.) Even if he and his wife are in the highest tax bracket, which would surprise me, given that he appears to be a former/retired firefighter, that's only a tax savings of 37% of the appraised value exceeding the aforementioned $23,200.
Yeah, the charitable organization would benefit greatly from the donation, but the OP would not likely see a substantial tax benefit, if he saw any, at all.
He would likely be much better off contacting a local auction house, as others have mentioned, and letting them take a 10% cut of the final sale price from him and get themselves a 15% buyer's premium, as well. Assuming those 12 guns sell for an average of $1,500, that's a total sale price of $18,000, or $16,200 in the OP's pocket. Assuming they appraise at a similar amount and the OP's tax situation is remotely similar to what I outlined above, he would get ZERO tax benefit from donating them to charity.
Of course, if the OP did sell them, and did receive more for them than he paid, he would be required by tax law to report that amount as a gain on his tax return. Since the OP refers to them as a collection, it stands to reason the IRS would determine they are collectibles, and the gain would be taxed at 28%, the tax rate for any gain on the sale of collectibles held for a year or more. If he simply reported it as a long-term capital gain on the disposal of personal property, the tax rate would be either 0, 15, or 20%, depending on the OP's total income. If personal property is disposed of for less than the price paid to acquire it, the taxpayer doesn't get to take a loss on their return.
Excellent response, however, you miss some important points. IRS is not staffed or likely to audit the sale of a private collection one by one, They will never know and no audit will happen and no taxes will be paid.
In the wildest of extremes, in states where every gun is registered and there is some reporting requirement, he might have to pay 20% capital gains tax. I have examined thousands and thousands of tax returns when I was allowed direct access to IRS databases on line for federal investigative purposes. I have never seen tax paid on the sale of guns or gun collections.
You may have as a preparer, you have that obligation to list every item, as it should be. When taking tax courses in law school, there is a common ethical mantra, "when in doubt deduct" you as lawyers have that obligation. That is different from tax preparation.
Last, this is a private collection, not something held as a capital gain asset, and not something held for making profit, so there is no Schedule C or alternative document every filed.
They are like golf clubs, except they often increase in value for many reasons including collectability.
I am 76 and started downsizing long ago. I believe he should maximize his profit, if any, and choose what guns go where. First to relatives suited to their needs currently of down the road. I have guns in trusts, some of them go to minors, but will not go to them for a long time, some are 6 years old, so their parents will hold onto them until they reach the proper age.
I agree with you there is almost no rational reason for anyone to itemize deductions under the current tax code. Only a business can benefit from piles of documents reflecting their business expenses.
Donations of some guns makes sense, like to youth shooting events, shotguns and rimfires that would not realize much cash anyway. Just giving back as gun guys do.
There are risks associated with sales such as Armslist but can easily be handled. It is illegal to sell across state lines of course, so the OP must verity driver's license and have a bill of sale of some sort to protect himself. There is also the risk of robbery, it happens. Where I live, local police have an areas set up with cameras, outside the station. You just go inside and tell them you are selling guns to strangers, and they watch from inside, that resolves the risk. It also limits any would be felons or illegal immigrants from trying to make a purchase, their face and tag numbers are on film. But it works quite well in practice. You do not even have to say you are selling guns, just selling to people on line. The only record they have is the film from that date and time.
And there is the argument that guns are a constitutional right. Taxing them is like taxing free speech when they are not held as a business asset. Just because you own one or 19, does not diminish your right to own or replace at any time. Another argument, of course. I am not sure it is legal to require any tax on firearms, "shall not infringe" has recent rulings that make this right a personal right that goes with you, everywhere you go.
My 2 cents
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