Noncash Contributions in TaxWise

Schedule A- Line 17- Contributions – Other than Cash

 

See IRS Pub 17, Chapter 24:

 

Taxpayer Documentation Requirements:

 

·        Description of the qualified charitable organization

·        Acknowledgment for any contribution of $250 or more

·        The FMV of each item is required

o   usually determined by taxpayer

o   Thrift shop value usually applies

o   AARP Tax Aide Counselors are not trained or qualified to appraise the value of donations

·        Date of each donation

·        Clothing and household items must be in good used condition or better

·        Records of items and amount donated should be retained by taxpayer

 

In TaxWise:

·        If the total of all non-cash donations is $500 or less, list non-cash contributions separately in the appropriate section of the A-Detail form

  • For Nebraska AARP Tax-Aide, non-cash donations $500 or more, the IRS Form 8283 is out of scope.  The form requires a fair market value appraisal of each item donated.  Counselors are not trained nor have expertise on appraising donated items.  Also most non-profits do not appraise donated items, i.e. a bag of clothes or used TV has no value without an inventory and appraisal.
  • To complete the Form 8283, taxpayers should go to a professional tax preparer or do their filing themselves. 

·       If total non-cash contributions exceed $500, do not enter anything on the “A detail sheet - other than cash contributions”; instead:

o   Go to Form 8283 to list all noncash contributions

o   Each donated item and date are listed separately (Various is not allowed)

o   For column h, Method used to determine FMV,

o   Note columns d, e, and f should not be filled in if that donation is under $500

 

Out of Scope:

·        Noncash contributions exceeding $5,000 make the return out-of-scope

·         Donations of vehicles are out-of-scope

·         Form 8283 Section B is out-of-scope

 

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Wayne Culp,
Oct 26, 2013, 1:06 PM
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