Form 8283
Candlefocus EditorFor example, if a taxpayer donates a car to a charity, he needs to complete Form 8283 in order to declare the donated asset and its value. The donor must provide information on the donation, including a description of the donated goods or services, the date they were donated, when they were received and the estimated fair market value of the goods or services.
Before filing Form 8283, the donor must obtain an appraisal to determine the value of the donated items. Generally, the donor pays for the appraisal and the cost can be deducted as a charitable contribution. Appraisals are not required for private stock valued at $10,000 or less, or for intellectual property.
Form 8283 should not be used for out-of-pocket expenses generated by volunteer or charitable work such as meals or transportation, or for cash or credit card contribution payments or expenses.
Filing Form 8283 is important for ensuring the donor receives an appropriate tax deduction. The donation must meet certain criteria in order to be accepted as a charitable deduction by the IRS. After filing Form 8283, the donor should submit it to the IRS along with a copy of the receipt for the donated item, as well as any other required documentation.
By completing and filing Form 8283, U.S. taxpayers can claim the benefits associated with non-cash charitable donations, such as reducing their income tax obligation. Generally, the amount allowed as a deduction cannot exceed the faire market value of the donated goods or services.