Have you enjoyed a generous year of giving to your favorite charity? If you, like many others, enjoy donating items rather than cash, IRS Form 8283 is for you.
What is the Form for?
Form 8283 is an IRS form designed for reporting noncash charitable contributions. On some occasions, a donor may choose to provide resources to a non-profit charity in a form other than a cash donation. Some examples of noncash charitable contributions are through the donation of items such as:
- Intellectual Property
- Building Materials
- Non-publicly Traded Stocks
Form 8283: How it Works
If a donation is categorized by the IRS as charitable, a tax-deduction for the donor is available in many cases. However, the IRS may require a written statement from the charity that received the donation, referred to as the donee (e.g. noncash contributions valued at more than $250). Contact your local IRS representative for more information on tax-deductions.
This form contains two sections. Section A is useful for donors reporting noncash contributions that total $500 or more. And Section B is useful for donors reporting noncash contributions totaling more than $5,000.
An important stipulation, at times overlooked in the process of donating property such as easements, regards the fair market value of the contribution. If the fair market value of the donation does not provide a material effect on the real property to which the contribution is added, no deduction is allowed.
For those who anticipate a tax-deduction in return for donated intellectual property, it should be noted that sufficient proof of the intellectual property and fair market value is required. In other words, proof of patent, copyright, trademark, etc is required by the IRS before the tax-deduction is approved.
Who uses it?
IRS Form 8283 is useful to individuals, partnerships, or corporations who have made noncash charitable contributions of $500 to over $5,000. However, this form is NOT used to report out of pocket expenses, check or credit card donations, and other expenses incurred in the process of volunteer services provided to the charitable organization.
Some information necessary to complete this form is:
- Donor’s Information
- Charity’s Information
- Date of the Contribution
- Date Acquired by the Donor
- How the Donor Acquired the Item
- Donor’s Cost
- Fair Market Value
- Method Used to Determine Fair Market Value
Other Relating Documents
If Form 8283 applies to you, additional helpful information may be found in the following IRS publications: