Donation Appraisals and Charitable Contribution Tax Deductions
Do you need “donation appraisals”? 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 and complete only “section A” of this particular form. However, if the value of your noncash donated item exceeds $5000 dollars in value then additionally you will be required to obtain an appraisal report from a qualified appraiser and also file IRS Form 8283 and particularly “section B” of this form. If the value of your noncash donated item exceeds $50,000 dollars in value then the qualified appraisal report as well as IRS form 8283 will be required to accompany your federal Form 1040 tax return if you intend to claim the full value of your charitable donation tax deduction. Please contact your tax professional or the Internal Revenue Service should you require additional information.