System and method for tracking charitable deductions

A system for determining a tax deductible valuation of charitable donations of used items, the system comprising:

• a partner server configured to receive, over a communication network, from an on-line marketplace selling used items, sales data of the used items, said sales data comprising a sales price of an item and an item description;
• and
• a central server configured to:
• determine a tax deductible valuation associated with said used items based on aggregate sales data of said used items,
• receive a user selection of a donated item and a tax year in which a donation of the donated item was made,
• retrieve a tax deductible valuation associated with said selected donated item for the tax year, and
• provide said tax deductible valuation associated with said selected donated item to an income tax preparation application wherein when current tax year sales data are not available, a temporary estimate is calculated for the tax deductible value for said donated item using sales data from a previous tax year, and
• when the current tax year sales data becomes available, the tax deductible value for said donated item is updated to provide an accurate value.