Form 8283: Noncash Charitable Contributions
This article is for informational purposes only and does not constitute legal or tax advice.
Always consult with a tax professional for your specific circumstances.
Charitable donations come in many forms, from monetary gifts to the donation of property.
In the case of noncash charitable contributions, the IRS requires that a specific form, Form 8283, be filled out and submitted along with your tax return.
In this article, we will discuss Form 8283: Noncash Charitable Contributions, including what it is, who can file it, and when and why it should be filed.
What is Form 8283: Noncash Charitable Contributions?
Form 8283 is a tax form you gotta fill out if you donate property like clothing, furniture, artwork, or even real estate to a qualified charitable organization and wanna claim a tax deduction. The form's got two sections:
- Section A for contributions of $5,000 or less and
- Section B for contributions over $5,000.
Don't worry, though. You don't have to be a tax pro to navigate the form. Just take it one step at a time and make sure to fill it out accurately and completely so you can get the most out of your tax deductions.
What is noncash charitable contributions?
Noncash charitable contributions are donations of property like clothing, furniture, artwork, or real estate to a qualified charitable organization, instead of giving cash or securities. This is a great way to support causes you care about while potentially receiving tax benefits.
To make the most of these benefits, it's important to work with a qualified professional and follow the proper procedures.
But don't sweat it! With the right guidance, you can make a meaningful contribution and get the full tax benefits you deserve.
So go ahead and donate those old clothes or that piece of furniture you don't need anymore!
NOTE! The donated property must be in good condition or better, as the IRS does not allow deductions for property that is in poor condition.
Who can file Form 8283?
Form 8283 can be filed by individuals or businesses (partnerships and corporations) who have made noncash charitable contributions and wish to claim a deduction on their federal income tax return.
To claim a deduction, the donation must be made to a qualified charitable organization, such as a 501(c)(3) organization.
When to file Form 8283 and why?
Form 8283: must be filed with the IRS when claiming a deduction for noncash charitable contributions, including donations of property such as clothing, furniture, artwork, or real estate.
The form should be filed with the federal income tax return for the year in which the noncash charitable contribution was made.
Property donations
When donating property, it is important to accurately determine its fair market value, as this value is used to calculate the tax deduction.
The fair market value is the price that a willing buyer would pay to a willing seller, and it takes into account the condition of the property and any special circumstances.
For example, a painting that is in excellent condition and was created by a well-known artist will have a higher fair market value than a painting that is in poor condition and was created by an unknown artist.
Property appraisals
If the value of the donated property is over $5,000, a qualified appraisal is required and must be attached to the form.
The appraiser must be independent of the donor and the donee organization, and they must be qualified to appraise the type of property being donated.
They should also provide a written report that includes a description of the property, the date of the appraisal, the appraised value, and a description of the method used to determine value.
NOTE! The IRS may disallow the deduction if the appraisal is not done by a qualified appraiser.
Pro Tip: It is important to file Form 8283 correctly and on time, to avoid any potential issues with the IRS. If you have any questions or concerns, it's best to contact the charity organization or the IRS for assistance.
How to file Form 8283 (step by step)
The form can be a bit overwhelming, but you can ensure that your 8283 is completed correctly and filed on time with a few simple steps:
- Gather all necessary information, including the fair market value of the donated property and the date of the donation.
- If the value of the donated property is over $5,000, obtain a qualified appraisal and ensure that the appraiser signs and dates the form.
- Download and print a copy of Form 8283 from the IRS website or request one from the charity organization.
- Complete Section A for donations valued at $5,000 or less, or Section B for donations valued over $5,000.
- Attach the completed Form 8283 to your federal income tax return for the year in which the donation was made.
- Make sure to keep a copy of the form and all supporting documents for your records.
Sections A and B
Section A is for donations valued at $5,000 or less and includes 4 parts:
- Part I: Identifies the donor and the donee organization.
- Part II: Describes the property donated, including the date acquired by the donor, the cost or other basis, and the fair market value on the date of the contribution.
- Part III: Requires the signature of the donee organization (the charity).
- Part IV: Requires the signature of the donor.
Section B is for donations valued over $5,000 and includes 6 parts:
- Part I: Identifies the donor and the donee organization.
- Part II: Describes the property donated, including the date acquired by the donor, the cost or other basis, and the fair market value on the date of the contribution.
- Part III: Requires the signature of the donee organization (the charity).
- Part IV: Requires the signature of the donor.
- Part V: Is for the qualified appraiser and requires their signature, date, and contact information.
- Part VI: Requires information about the appraisal, including the date of the appraisal, the appraised value, and a description of the method used to determine value.
Form W-7 preview
What if I have problems with my Form 8283?
If you have any questions or problems while completing Form 8283, you should contact the charity organization or the IRS for assistance.
If you realize after you have filed your tax return that you made an error on the form, you can file an amended return using Form 1040X.
It's important to remember to attach a copy of the corrected Form 8283 and any other necessary supporting documentation to the amended return.
In case the IRS examines your return and finds errors on the form, they may require additional information or documentation. The IRS may also make adjustments to your deductions.
NOTE! IRS has strict rules for noncash charitable contributions, and failure to properly file Form 8283 can result in the disallowance of your deductions, so it's important to be accurate and complete when filling out the form.
Unsure of each piece to be filed?
Get your free tax consultation
FAQ
When donating stock, report the fair market value on Form 8283. Include details like the number of shares, date of donation, and any documentation on the stock's value provided by the charity.
The IRS may verify cash donations using documents like canceled checks, bank statements, or credit card statements. Keep records of all cash donations and ensure you have receipts for any donation over $250.
There's no specific donation amount that automatically triggers an audit. However, large donations relative to income or inadequate documentation may draw scrutiny. Maintain thorough records and receipts for donations over $250.
You might receive multiple Form 8283s if you donated property to different charities or if the total value of your donations exceeded $500,000. Each form corresponds to a single donation or a specific threshold.