Form 8283 Instructions

The IRS requires you to file Form 8283 and attach it to your tax return if you donate noncash property worth more than $500. Our Form 8283 Instructions will enable you to claim a larger deduction for your donation. In addition, it’s important to note that if you donate cash or personal property worth over $250, you must also include this information on Schedule A, Itemized Deductions. You must also provide a qualified appraisal and complete Section B of the form to substantiate your claimed value. However, there are some exceptions to this rule. For example, you do not need to file this form if you donated clothing or household items that are in good used condition or better. Also, you do not need to file this form for donations of cash or other property made by check, credit, or debit card.

How to Fill out Form 8283?

• To determine if you need to file Form 8283, you must compare your property’s fair market value (FMV) at the time you donated it with the amount you claimed as your contribution deduction on your tax return.
• You can use the FMV of your property as determined by a qualified appraiser, or you can choose to use the cost or adjusted basis that you actually paid for the property.
• You must use a separate Form 8283 for each property (or group of similar properties) for which you claim a deduction of $5,000 or less, except for publicly traded securities reportable in Section A.
• For each item of property or group of similar items in Section B, you must include a written qualified appraisal from a qualified appraiser.

A thorough understanding of the form is essential before filing it. Failure to submit a properly completed Form 8283 can result in disallowance of your donation deduction. For this reason, you’ll want to work with a tax professional when filling it out. The expert will help ensure that all relevant details are included and that the form is filed correctly, saving you time and money in the long run.

Charitable Donations

Noncash charitable donations are any type of property other than cash that you give to a qualified organization for religious, literary, scientific, educational, or humanitarian purposes. You can claim these donations on your federal taxes as an itemized deduction, provided that you meet all the requirements, including obtaining any required appraisals. If you have any questions about the required appraisal of your donated property, it’s a good idea to contact the charity organization or a tax professional for assistance. The IRS has strict rules on reporting noncash charitable contributions, and penalties for failure to file or incorrect filings can be substantial.

You must fill out a separate Form 8283 for each donation of property you claim as a deduction unless the property belongs to a group of items comparable in category and value. Publicly traded stock is reportable in Section A, while items reported on Section B must include a written appraisal by a qualified appraiser.