What is 'Form 8283'

Form 8283 is a tax form distributed by the Internal Revenue Service, IRS, and used by filers who wish to deduct noncash contributions made to a qualifying charitable organization. Deductions for noncash contributions are reported as itemized deductions. Noncash contributions can include securities, property, vehicles, collectibles or art. Form 8283 is available on the IRS website along with full instructions for filling it out.  

BREAKING DOWN 'Form 8283'

Form 8283 is necessary for declaring the value of noncash contributions because those contributions may be subjective and could have different variables that determine its value to certain parties. Unlike donating cash, the donated noncash items may require an appraisal in order to determine value. Form 8283 requires a declaration by the appraising party indicating that the party is not the donor, donee, party to the transaction and does not have any conflict of interest that might influence the value at which an item is appraised.

According to the IRS website, Form 8283 is required for all individuals, partnerships and corporations to report their noncash charitable contribution if the deduction for the noncash gift equals more than $500. The only exception to the $500 rule is for C-corporations. Corporations with the C-corp tax status must file the Form 8283 only if their charitable donation exceeds $5,000.

What is Form 8283 not to be used for? Form 8283 is not used for reporting out-of-pocket expenses acquired for any volunteer or charitable work or for any amounts you contributed that were cash or credit payments or expenses. The form is also not used for actually figuring out the amount that you as a company or individual can deduct for your charitable donation. A separate form is used to figure out the amount you can deduct based on your contribution or donation or you may consult with a tax professional.

Example of Form 8283

Ms. Smith has a vase that has been in her family for generations. She has had the vase appraised by a professional appraiser and it is found to have a value of $100,000. Ms. Smith decides to donate her vase to a local silent auction that is being held to raise money for a mother going through cancer treatments. She does not ask for any payment or anything in exchange for donating her vase. However, while preparing her taxes, Ms. Smith’s account is able to file a Form 8283 to show the value of what she donated in order to claim her charitable contribution as a tax deduction.

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