Qualified Appraisal of Charitable Contribution

Appraisals Required on Donations Valued Greater than $5,000

If you would like to donate a vehicle, boat, camper, airplane, real estate, jewelry, industrial equipment, product overruns, building materials, or food, and you believe it is valued at more than $5,000, the IRS currently requires you to obtain a qualified appraisal of charitable contribution. Multiple donations of similar items within a calendar year totaling over $5,000 will also require a qualified appraisal. To substantiate a tax deduction over $5,000, you will need to obtain a qualified appraisal within 60 days prior to donating your gift.

Rawhide does not provide qualified appraisal services due to the conflict of interest. Donors must obtain a qualified appraisal from a third party. An appraisal must give all the facts on which to base an intelligent judgment of the value of the property.

A Qualified Appraisal of Charitable Contribution Must Include:

• A description of the property in sufficient detail for a person who is not generally familiar with the type of property to determine that the property appraised is the property that was (or will be) contributed
• If you have more than one item, please provide a list of the items including the description, make and model, etc.
• The physical condition of any tangible property
• The date (or expected date) of contribution
• The terms of any agreement of understanding entered into (or expected to be entered into) by or on behalf of the donor
• The name, address, and taxpayer identification number of the qualified appraiser and, if the appraiser is a partner, an employee or an independent contractor engaged by a person other than the donor; the name, address, and taxpayer identification number of the partnership of the person who employs or engages the appraiser
• The qualifications of the qualified appraiser who signs the appraisal, including the appraiser’s background, experience, education, and any membership in a professional appraisal association. A qualified appraiser cannot be a party to the transaction in which the donor acquired the property, a relative, or a person employed by the donor
• A statement that the appraisal was prepared for income tax purposes
• The date (or dates) on which the property was valued
• The appraised Fair Market Value on the date (or expected date) of contribution
• The method of valuation used to determine fair market value, such as the comparable sales or market data approach, or the replacement cost less depreciation approach
• The specific basis for valuation, such as any specific comparable sales transaction
• A description of the fee arrangement between the donor and appraiser

IRS Publication Information

For complete information, you can obtain IRS form 8283, Noncash Charitable Contributions; IRS publication 561, Determining the Value of Donated Property; and IRS publication 526, Charitable Contributions free of charge by calling the IRS at 1-800-829-3676.

You can also download the publications directly from the IRS website. Please enter the keywords 8283, 561, or 526 in the keyword/search terms box.

In order to ensure compliance with IRS requirements as they apply to your specific donation and circumstances, always confer with a qualified tax professional.