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Non-cash Donations to Charitable Organizations
If you decide to donate a piece of
furniture, an oil painting, silver candlesticks or some other item in your
collection to your favorite museum or historical society, you should be aware of
the IRS rules for charitable donations.
Donated property of $5000 and over
requires a Fair Market Value appraisal by a qualified appraiser and over $500 an
appraisal is advisable in order to document your donation and support your claim
for a tax deduction. All donations require you to file Form 8283 with your tax
return. You do not have to submit the appraisal with your tax return but it must
be kept in your files. Donations of $20,000 or more require you
to submit the appraisal and pictures with your return.
What is Fair Market Value? According to
IRS publication 8282 FMV it is the price a willing, knowledgeable buyer would
pay a willing, knowledgeable seller when neither has to buy or sell. Form 8283
has to be signed by the donor, the appraiser and the donee. The appraisal should
be done no more than sixty days prior to the donation and should be filed in the
year you donated the property.
Who is a qualified appraiser? A
qualified appraiser is one who is an expert in his or her field and who knows
and complies with accepted appraisal methodology. Members of Appraisers
Association of America, American Society of Appraisers and International Society
of Appraisers are trained appraisal specialists.
For further information see Form 8283 and
instruction booklet 8282 both of which can be downloaded from the IRS web site.
Further information on the Appraisers Association of America, the International
Society of Appraisers and the American Society of Appraisers can also be
obtained from their web sites.
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