Donation Appraisals and Charitable Contribution Tax Deductions
Do you need “donation appraisals” for personal and or your business tax return? Changes were made to the IRS Tax Code in 2007. According to the IRS, if the value of your non-cash donated item exceeds $500 dollars and is less than $5000 dollars, then you will be required to file IRS Form 8283 with your tax return.
If the value of your non-cash donated item exceeds $5000 dollars through a value of $25,000 dollars in value then in addition to filing IRS Form 8283 you will also be required to obtain an appraisal report from a qualified wine appraiser.While the law requires you to hire your choice of qualified wine appraisers, you are not required to submit your copy of the liquor appraisals or wine appraisal report.
However, if the value of your non-cash donated item exceeds $25,000 dollars in value then you will required submit a copy of the qualified appraisal report as well as IRS form 8283 with your federal Form 1040 tax return. Please contact your tax professional or the Internal Revenue Service should you require additional information.