Noncash Charitable contribution
Form 8283 is tax form to report Noncash Charitable contribution, taxpayer who wishes to deduct noncash contribution made to a qualifying charitable organization. A tax payer must file one or more Forms 8283 if the amount of your noncash contribution is more than $500 and also file Form 8283 if you have a group of similar items for which total deduction of over $500. In this form you can file only non cash contribution amount do not use Form 8283 to report cash contributions. Amount you gave by credit cards or checks and expenses made on your personal work. If you have contributed the items less than $500 can show it in Schedule A under Noncash items. Form 8283 is filed by individuals, partnerships, and corporations.
Noncash contributions refers to donation gives in kinds such as Cloths, Books & Bags, Food kits, sports kit, school materials and Furniture’s etc and same rules are applicable when you file the business tax return like C corporation(1120), Partnership(1065) and S corporation (1120S).
Tax payer should file Form 8283 with tax return for the year tax payer contributed the property or Item in order to claim the deduction. Form 8283 has two section when the tax payer File Form 8283 he/she must complete either Section A or Section B. Section A to report donation of property for which you claimed a deduction of $5,000 or r less per item or group of similar items and Also Section A to report donations of publicly traded securities, certain intellectual property, a qualified vehicle. Section B to report donations of property for which you claimed a deduction of more than $5,000 per item or group of similar items.
Section A – Information of donated property
Column (a) – Name and address of the donee organization, Column (b) check if the donated property is a qualified vehicle, Column (c) to Describe the property in sufficient detail such as Vehicle- give the year, make, model, condition, and mileage at the time of the donation and if it’s securities- Company name, number of shares, kind of security or share of a mutual funds are regularly traded on a stock exchange. Column (d) date of contributed the property or item (if it’s various you can enter each contribution and its date on a separate row). Column (e) Enter the date you acquired the property/item or enter the date it was substantially completed. Column (f) reports that how you acquired the property like Purchase, Gifts, Inheritance or Exchange. Column (g ) reports donors cost, however do not enter cost of publically traded securities more than 12 months, Column(h) represented the Faire market values(FMV) of the property on the date of donated, Column (i) enter the methods you used to determine the FMV (Exp- Appraisal, Thrift shop value, catalog or comparable sales).
Section B- Part I Information on Donated Property:
In the Sec B of Form 8283 need to reports donated property values more than $5000 except Publicly Traded Securities, Vehicles, Intellectual Property or Inventory Reportable in Section A. Tax payer must get a written qualified appraisal from a qualified appraiser before completing Part I.
Applicability of Appraisal letter:
⦁ Art valued at $20,000 or more.
⦁ Clothing and household items not in good used condition.
⦁ Easements on buildings in historic districts.
⦁ Deduction of more than $500,000.
Exception of Appraisal letter: Taxpayer not need written appraisal if the property is
⦁ A Qualified Vehicle
⦁ Intellectual property and
⦁ Publically traded securities.
Part II- Partial Interests and Restricted Use Property
Part II applies if you donate more than one property need to attach separate statement and separate information for each property.
Part III, Taxpayer (Donor) Statement:
Complete Section B, Part III, for each item included in Section B.
Part IV, Declaration of Appraiser
If you are required to get an appraisal, you must get it from a qualified appraiser.
Part V, Donee Acknowledgment
The donee organization that received the property described in Part I of Section B must complete Part V