The IRS Form 8283 is a tax form used to report certain non-cash charitable contributions to the Internal Revenue Service (IRS).
Definition and Example of Form 8283
Form 8283 is a two-part tax form used to report certain non-cash charitable contributions in order to claim an itemized deduction.
The form includes Sections A and B. Section A reports non-cash contributions valued at $500 or more but not exceeding $5,000. It also reports contributions of publicly traded securities of any value. Section B is used for contributions valued over $5,000.
Note: The $500 threshold applies to the total of all gifts made to the same organization during the tax year.
The form applies to non-cash gifts such as vehicles, real estate, and securities, as well as tangible items like household furniture and clothing when donated to qualified charitable organizations.
For example, you would need to file Form 8283 with your tax return if you donated your old car to a charity and wish to claim an itemized tax deduction for the value of the car, which is $4,500. You would also need to file Form 8283 if you donated artwork to a charity valued at $600.
Who Uses Form 8283?
Form 8283 is used by individuals, corporations, and partnerships when they donate non-cash property.
Note: Form 8283 does not apply to cash gifts such as donations made in cash or via debit or credit card. You do not need to file the form if you wish to claim deductions for personal expenses incurred while performing volunteer work.
Where Can You Obtain Form 8283?
Form 8283 is available on the IRS website. You can fill it out online, save it, and print a final copy, or you can print the blank form, download it, and fill it out.
How to Fill Out and Read Form 8283?
Enter your name as it appears on your tax return in the first unnumbered space at the top of Form 8283, then enter your Social Security number or taxpayer identification number in the box labeled “Identification Number” to the right of this space.
Section A
Section A consists of only one part. This section is used to detail gifts (or groups of gifts) for which you are claiming a deduction of $5,000 or less, and publicly traded securities valued over $5,000.
There is space for five gifts on lines A through E. Each line is associated with nine columns (a) through (i), which request different details regarding that gift.
Column (a): Enter the name and address of the organization to which you donated. Column (b): Check the box here if it is a vehicle donation and enter the vehicle identification number. Column (c): Provide a description of the item’s condition. Column (e): Enter the date you made the donation. Column (f): Tell the IRS how you obtained the ownership of the property. Column (g): Enter the amount you paid for the property or “adjusted basis” if you incurred any costs to maintain it during your ownership, such as fees you may have paid for securities. Column (h): This space is for the fair market value of the donated item. Column (i): Tell the IRS how you arrived at the fair market value you are claiming, such as an appraisal.
Section B
Section B is used for properties donated that are valued over $5,000.
The first part asks you to check a box that specifies the nature of the item you are claiming a deduction for, such as artwork, a vehicle, or artifacts. A box for clothing and household items has recently been added to this section regardless of value, even if they are not in good condition or are used.
You will see
Space for three gifts below (from lines A to C) with the corresponding columns (a) to (i), just as in section A. However, some of these columns require different information than what is requested in section A.
Column (a): Provide a description of the property you donated for which you are claiming a tax deduction. Column (b): Describe the condition of the property at the time you made the donation. Column (c): Specify the fair market value of the gift. Column (d): Enter the date you acquired the property you donated. Column (e): Tell the IRS how you acquired the property. Column (f): Enter the amount you paid for it or the adjusted basis. Column (g): Specify whether the gift was obtained through a profitable sale and, if so, enter the amount received for it. Column (h): Tell the IRS the amount of the deduction you are claiming for this gift. Column (i): Enter the date you made the contribution.
Part two is dedicated to gifts for which you had only a partial interest, or those that have a restricted use. You may need help from a professional if you are required to complete this section.
Part three asks you to identify items listed in this section that are valued at $500 or less. Your signature is required, acknowledging that any of these items was not worth more than $500 to the best of your knowledge.
Part four must be completed and signed by your appraiser.
Part five must be completed and signed by the organization to which you donated the gift, acknowledging it.
You may attach a separate statement to section A or B if you need more space to provide all these details.
Can Form 8283 be submitted online?
Form 8283 must be submitted with your tax return, so you can include it if you file your return online. You can file your tax return and corresponding forms and schedules online at the IRS Free File site, or using a reputable tax preparation software.
Where can Form 8283 be mailed?
Where to send your tax return (along with Form 8283) depends on the state you live in, as well as whether you are including a payment for any tax owed. The IRS publishes a comprehensive list of addresses on its website, with links for each state.
Requirements for filing Form 8283
Form 8283 must be submitted with your tax return for the tax year in which you made the contribution and are claiming a deduction. A separate form must be submitted for each organization to which you donated a gift. You will need a receipt from the organization acknowledging the gift, and the organization must confirm that it is qualified. It can do this by signing part four of section B of the form.
Note: You will need to provide a written appraisal that substantiates the value of the gift if you donated certain artworks or non-publicly traded stock, a car, a boat, an airplane, or clothing or household items that are in less than good condition or used, or (in the case of corporations or partnerships) inventory or property that you held for sale to customers. The appraisal must be dated within 60 days of the date you made the contribution.
Generally, you do not need to submit the appraisal with your tax return unless the gift in question is artwork valued at $20,000 or more; clothing or household items that are in less than good condition or used; rights to use historic buildings; or deductions exceeding $500,000. However, you will want to keep a copy of the appraisal for your records.
Must
You should take and keep pictures of any item you donate that has a claimed value of over $20,000, as the IRS may request them if they have questions about the deduction you’re claiming.
The IRS imposes penalties for not submitting Form 8283 for contributions for which you’ve claimed a tax deduction, as well as for errors and/or negligence in completing the form, so you may want to seek the help of a tax professional.
Key Takeaways
- You must submit Form 8283 with your tax return if you are claiming a deduction for non-cash property donated to a qualified charity.
- Your tax deduction for charitable contributions can be denied if you do not submit Form 8283, or if you fill it out incorrectly.
- The form has two sections: one section for items valued at $5,000 or less, and another section that provides details about items valued at over $5,000.
- Some contributions come with unique rules, such as household items and clothing.
- Form 8283 is complex because the input of information depends on many qualifying factors, so you should consider consulting a tax professional.
Source: https://www.thebalancemoney.com/what-is-form-8283-5216917
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