Looking for Form 8283?
What is form 8283 used for?
How do you report noncash donations to charitable organizations?
In this article, I will break down Form 8283 you’ll need to file with the IRS so you know all there is to know about it!
Keep reading as we have gathered exactly the information that you need!
Let me explain to you what Form 8283 is all about and how it works!
Are you ready?
Let’s get started!
What Is Form 8283
Form 8283 refers to the Internal Revenue Service form called Noncash Charitable Contributions.
Whenever the value of all property you donate exceeds $500, you are required to complete an 8283 tax form.
In essence, the federal tax laws in the United States allow taxpayers to claim a deduction for the value of the property donated to qualified charitable organizations.
However, when the combined value of all property you have donated to a charitable organization is above $500, you should complete the federal tax form 8283 to provide the IRS with the specifics.
This form can be used by individuals, partnerships, and corporations to claim a tax deduction for the property they donate.
However, c-corporations should only complete an 8283 tax form to the extent their charitable donations exceed $5,000.
Donated Property Value
When you donate property, you have the right to claim a tax deduction equal to the fair market value of the property donated.
When you donate cash, calculating the value of what you donated is easy.
However, when you donate property like clothing, furniture, automobile, or other noncash assets, you must determine the market value of the property.
The market value of the property is equal to what a buyer would be prepared to pay you to purchase the property used.
In some cases, the IRS will require you to get a qualified appraisal of the property (for example when the value of a single item or a group of items you donate exceeds $5,000).
Annual Deduction Limit
Even though you have the ability to make donations to charitable organizations and claim a deduction, you must be mindful of how much the IRS may accept in tax deductions.
In some cases, taxpayers may not be able to claim the full value of the property specified on IRS tax forms 8283 to the extent the value exceeds 50% of your adjusted gross income.
IRS Form 8283 Instructions
Let’s see how Form 8283 IRS works and how you can complete it.
Form 8283 is a simple form divided into five parts:
- Part 1: Information on the donated property
- Part 2: Partial interests and restricted use property (other than qualified conservation contributions)
- Part 3: taxpayer (donor) statement
- Part 4: Declaration of appraiser
- Part 5: Donee acknowledgment
Part 1 gets divided into two sections:
- Section A: Donated property of $5,000 or less and publicly traded securities
- Section B: donated property over $5,000 (except publicly traded securities, vehicles, intellectual property, or inventory reportable in Section A)
In Part 1, you’ll need to provide information related to the property you are donating by providing information such as:
- Name and address of the charitable organization
- Vehicle Identification Number if the donated property is a vehicle
- Description and condition of the donated property
- Date of contribution
- Date acquired
- How property was acquired
- Donor’s cost or adjusted cost
- Fair market value of property
- Method used to determine fair market value
You’ll need to complete Part 2 if you have less than 100% of the interest in the donated property.
You’ll need to:
- Identify the property in which you have less than the entire interest
- Total amount you are claiming as a deduction
- Name of charitable organization to which your contribution was made
- Place where property is located for tangible property
- Name of person or organization having actual possession of the property
Part 3 of IRS tax form 8283 relates to the taxpayer statement.
The statement given by the taxpayer is to the effect that to the best of the taxpayer’s knowledge and belief, the properties identified in Part III and included in Section B of Part 1 do not have an appraised value of more than $500 per item.
Declaration of Appraiser
Part 4 of IRS 8283 form relates to the declaration of an appraiser.
If an appraiser was used to evaluate property, the appraiser will state that he or she:
- Is not a party to the transaction
- Performs property appraisals on a regular basis
- Has the qualifications to perform the appraisal
- Any false or fraudulent overstatement will result in penalties under the law to the appraiser
- The appraisal will be sued in connection with a tax claim or tax refund
The last part of the IRS gov form 8283, Part 5, relates to the acknowledgment of the donee.
Essentially, the charitable organization must acknowledge that it is a qualified organization under Section 170(c) and that it has received the property outlined in Section B of Part 1 on a specified date.
The donee must also acknowledge that it will file Form 8282 if it sells the donated property within 3 years after the date it was received.
Form 8283 Example
What are some examples of noncash contributions to charitable organizations?
Essentially, any property you donate to a charitable organization can be reported on IRS Form 8283.
Here are some examples of noncash contributions:
Pretty much any property that you give to a charitable organization can be reported to the IRS.
IRS Form 8283 Takeaways
So, there you have it folks!
What is tax form 8283 in simple terms?
The 8283 IRS Form refers to the Noncash Charitable Contributions tax form used by those who wish to claim a tax refund for noncash contributions they made during a given year to a qualified charitable organization.
When the value of all property you donated is below $500, you don’t have to complete the 8283 Form.
However, when you donate more than $500 worth of property, you should complete the IRS form 8283.
Also, the value of a single property or group of properties you donate exceeds $5,000, you will need to get it appraised to establish the market value of the property donated.
I hope I was able to explain to you what Form 8283 is used for, how it works, and why it’s important.
Remember, this article is intended to give you general information.
If you need advice on a tax matter or have tax issues, be sure to consult a tax attorney or a qualified tax professional for assistance.
Good luck with your Form 8283!
Let’s look at a summary of our findings.
Understanding Form 8283
If you enjoyed this article on IRS 8283, I recommend you look into the following legal terms and concepts. Enjoy!
You May Also Like Related to 8283 Form
Charitable contribution deduction
Charitable organization definition
IRS Publication 526
IRS Publication 544
IRS Publication 561
Proof of charitable contribution
What is a charitable donation
What is a donation
What is a gift
What is tax deduction
Tax Relief Act of 2010