If you are a U.S. taxpayer then you have an idea that you can also claim a deduction for your noncash donations made to a charity. But you also have to make sure that you are making the donation to a qualified charity. Generally, the nonprofit organization should promote any kind of religious, literary, educational, scientific, humanitarian, or other charitable causes in order to qualify. You need to fill out the IRS Form 8283 to claim these deductions if the total amount is more than $500.
At this point, you must have started having questions like what is IRS form 8283, where to mail IRS form 8283, or how to fill out IRS form 8283. There is no need to worry as here we are going to discuss almost every important aspect of the IRS 8283 form and IRS form 8283 instructions as well.
Who can file?
Almost everyone can fill out his IRS form including individuals, partnerships, and corporations. With this tax form, you can claim all the noncash contributions made to a qualified charity. But the value of all those donations should be more than $500. Only C-corporations are an exception. These corporations will have to fill out IRS gov form 8283 when the value is more than $5,000. If you have made donations to different charities then for each individual charitable organization, you have to file a different form.
You May Also Read: IRS Form 7004?
Valuation of the Contributions:
When a taxpayer donates property to a non-profit charitable organization, he/she can claim a deduction for the fair market value of that property. The taxpayer has the responsibility to determine the value of the property donations. There are many different ways to get the estimated value. No matter which method you use, the estimated value needs to be a realistic price.
How to file?
If you are wondering what is the process to fill out form 8283 IRS then do not worry. Here we have explained the process in great detail. Before starting the process to fill out this form, you should keep all the relevant information and documents in place. First of all, you will have to enter your name and then an identifying number. If you are an individual then it is your Social Security Number and if you are filling this form for your corporation then use the employer identification number. This form has two different sections A and B. To fill out the first part of Section A, you have to enter the following information:
- Name and address of the organization
- Vehicle identification number in case the property is a vehicle
- Description of the property.
- Date of making the contribution
- Date of acquiring the property
- Details about the original acquirement of the property
- The fair market value of the property
- The method you have used to estimate the value
If there was less than an entire interest in a property listed in the previous section then you have to fill out the second part.
After this, you can move to Section B. The first part of Section B is similar to the first part of Section A. And this needs to be filled out by the taxpayer himself. The taxpayer also needs to sign a declaration. And the recipient has to sign an acknowledgment. This declaration will include name, identification number, address, and a signature from an authorized officer.
In Section B only a few items are included. These are the ones for which the deduction has been made for more than $5,000. In this section, you cannot include publicly traded securities as they need to be mentioned in Section A. And you have to get a written appraisal from a qualified appraiser before filling out the next part. And this appraisal must include all the items mentioned in Section B. If there are two or more contributions and the total value is more than $5,000 then you will have to fill out a separate Form 8283 for each item and each charitable organization.
To fill out the first part of Section B you will have to include a written appraisal for the contributions. But if the contribution is intellectual property or a vehicle then you can make an exception when it comes to the appraisal requirement. In the second part, you will have to sign. This is to declare that all the information regarding the appraised items is accurate.
In the third part, a qualified appraiser will also have to sign a declaration. This declaration will state that he/she is not the donor, nor employed by any associated parties. In this, he/she will also confirm that the appraisal is accurate.
The fourth part of Section B needs to be left blank. The charitable organization to which you have made the contribution will fill out this part.
When you file an 8283 IRS form to claim the deduction for your contributions of motor vehicles, boats, and/or airplanes then you will also need to fill out an additional form. This additional form is Form 1098-C. This form is used to show the gross proceeds. There can be instances when you have to attach a written appraisal by a qualified appraiser with the IRS form 8283. This is required when the contributions are made in the form of art pieces. And if the value of those art pieces should be $20,000 or more. The first part of Section B can only be filled out after getting the written appraisal. Although you do not have to submit the appraisal with the form, it should be kept with the records.
You May Also Read: IRS Form 5329?
Where to get the form?
You can download the IRS Form 8283 from the official website of the IRS.
If you are someone who has made some non-cash donations to a charitable organization then you can claim these deductions. For this, you have to fill out the IRS Form 8283.
Some of the IRS forms are very easy to fill out while some of them are on the higher end of complexity level. This form is one of the difficult ones. In such cases, most of the people consider taking help from a tax professional. He /she will make sure that you fill out this form correctly and submit it before the due date. If you are wondering where you can get the right help then do not worry. We have a large team of dedicated tax accountants who are just a call away. You can contact us on Accounts Confidant or call us at +1-866-301-2307. We are available 24×7.