I hand on fiction routinely. If I remember, I write my name and where I got it inside. Then I set it free.
I'll hand on anything i don't think I'll read again, or that I don't think I'll read in the near future and that I can probably pick up or borrow easily. TBH it means more to me that more people are reading a book I love, than that I own the book.
The only fiction I tend to keep is either stuff that's REALLY resonated, that I know I will need to re-read, or stuff I do certainly want to read with my kids fairly soon. And sometimes a book just makes such an impact on me that I want to have THAT book around to remind me of how much I liked reading it. But I'm finding as I get older that that happens more and more rarely.
Kids books are so much harder. I tend to pick up good kids books when I see them, and often I don't want to get rid of them. I do remember really enjoying browsing my parents' bookcases when I was a child, and because my mum was a teacher there was often really interesting stuff on there. I do occasionally declutter the kids books but I think I'd struggle to do a real cull, even though I'm aware that we have books on their bookcase that have been owned for a long time and not read.
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