Instructions for Form 8283: How to Report Charitable Contributions

Donating to charity can provide tax benefits, but the IRS requires proper documentation for deductions. If you contribute non-cash donations above a certain amount, Form 8283 is necessary to report them accurately and avoid issues with your tax return.

Who Must Use Form 8283

Taxpayers who donate property instead of cash and claim a deduction exceeding $500 must file Form 8283 with their tax return. This applies to individuals, partnerships, and corporations, though C corporations have a higher threshold of $5,000 before the form is required. The IRS enforces these requirements to prevent inflated valuations and ensure deductions reflect fair market value.

The type of property donated determines whether this form is necessary. Common examples include vehicles, artwork, real estate, and securities. Publicly traded stock requires Form 8283 only when the deduction exceeds $500, while closely held stock has a $10,000 threshold. Donations of vehicles, boats, and airplanes may require additional documentation, such as Form 1098-C.

For donations exceeding $5,000, an appraisal is generally required unless the property is publicly traded securities or certain intellectual property. The IRS mandates this to prevent overvaluation, which can result in penalties. If a claimed value is overstated by 150% or more, the penalty increases from 20% to 40%.

Documentation Requirements

Proper documentation is essential to substantiate a charitable contribution deduction. For contributions valued between $500 and $5,000, taxpayers must maintain written records that include the charity’s name and address, the donation date, and a description of the property. The IRS also requires proof of fair market value, which can be supported by comparable sales, a qualified appraisal, or other reasonable valuation methods.

For donations exceeding $5,000, additional requirements apply. The donor must obtain a written acknowledgment from the charity confirming whether any goods or services were received in exchange for the donation. If benefits were provided, their estimated value must be specified, as only the net amount qualifies for deduction. If the donated property has restrictions, such as resale limitations or partial interests, these details must also be disclosed.

Certain donations require specialized documentation. Household items like furniture or electronics must be in good used condition or better to be deductible unless accompanied by a qualified appraisal. Donations of intellectual property, such as patents or copyrights, require additional filings to track income generated by the asset, as future deductions may depend on the charity’s revenue from the donation.

Sections of Form 8283

Form 8283 is divided into sections to ensure taxpayers provide sufficient details about their donations, including valuation methods and required appraisals. Completing each section accurately helps avoid IRS challenges and potential penalties.

Section A

This section is for reporting non-cash donations valued between $500 and $5,000, as well as publicly traded securities exceeding $500. Taxpayers must describe the donated property, including its condition and acquisition details. The IRS requires donors to explain how they determined fair market value, whether through comparable sales, cost basis adjustments, or other valuation methods.

For example, if a taxpayer donates a used vehicle worth $3,000, they must list the make, model, year, and condition. If the valuation is based on a pricing guide like Kelley Blue Book, the specific edition and page number should be referenced. If the property was acquired through purchase, inheritance, or gift, the acquisition date and original cost must be disclosed. While an appraisal is not required for most items in Section A, taxpayers should retain supporting documents in case of an IRS audit.

Section B

This section applies to donations exceeding $5,000, except for publicly traded securities and certain intellectual property. Unlike Section A, Section B requires a qualified appraisal unless the donation is exempt. The donor must provide details about the appraiser, including their name, address, and credentials, along with a summary of the valuation report.

For instance, if a taxpayer donates a painting valued at $12,000, they must obtain an appraisal from a qualified art appraiser who meets IRS standards. The appraisal must be conducted no earlier than 60 days before the donation and no later than the tax return due date, including extensions. The charity must also complete Part IV of Section B, acknowledging receipt and confirming that no goods or services were provided in return. Failure to obtain a proper appraisal can lead to the IRS disallowing the deduction, and if the valuation is significantly overstated, penalties may apply.

Appraiser Details

When an appraisal is required, the IRS mandates that it be performed by a qualified appraiser with verifiable education and experience in valuing the type of property donated. They must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) and cannot have a financial interest in the donated property.

The appraisal report must include a detailed description of the property, the valuation method used, and the appraiser’s justification for the assigned value. If a taxpayer donates a rare antique worth $20,000, the appraiser must provide comparable sales data, historical price trends, and relevant market conditions. The report must be signed and dated, and the appraiser must complete Section B, Part III of Form 8283. If the IRS determines the appraisal lacks credibility or the appraiser is unqualified, the deduction may be denied. Appraisers who knowingly provide inflated valuations can face penalties, including fines of up to 125% of the appraisal fee.

Filing and Submission Steps

Completing Form 8283 correctly is only part of the process—proper filing ensures the IRS accepts the deduction without delays or disputes. Taxpayers must attach the form to their tax return. If multiple non-cash donations require separate appraisals, additional copies of the form may be needed. When filing electronically, most tax software includes prompts for entering the required details, but it’s important to verify all sections are completed accurately before submission.

If the donation requires an appraisal, the taxpayer must ensure the appraiser signs Section B before filing. For contributions involving partial interest transfers—such as donating a conservation easement—additional documentation must be submitted, including a description of any restrictions on the property. Some deductions also require IRS Form 8282, which charities must file if they sell or dispose of donated property within three years. This ensures compliance with the three-year rule, which prevents donors from inflating deductions for items quickly liquidated at a lower value.

Record Retention

Maintaining proper records for charitable contributions is necessary in case of an IRS audit. The length of time a taxpayer must retain documentation depends on the nature of the donation and whether an appraisal was required. Generally, taxpayers should keep copies of Form 8283, appraisal reports, and written acknowledgments from charities for at least three years from the date they file their tax return. However, if the donation involves property subject to the three-year substantiation rule, records should be kept for six years.

For high-value donations, especially those exceeding $500,000, additional scrutiny is possible, making long-term retention advisable. If the IRS challenges a deduction and adjustments are made, records should be preserved indefinitely to support future filings. Digital copies of documents, including scanned receipts and electronic appraisals, can serve as valid records if they are legible and accessible. Taxpayers who fail to produce adequate documentation risk having their deductions disallowed, and in cases of substantial misstatements, penalties may apply.