Insurance, claims and donations
What is an IRS Form 8283 donation appraisal?
In short: It is the appraisal a donor needs when a non-cash charitable gift, such as a card collection, is above the IRS thresholds. The report states fair market value and includes the appraiser declarations the form calls for.
If you give cards to a charity and want to deduct their value, the IRS wants more than your own estimate once the gift is large enough. Form 8283 is where non-cash contributions are reported, and above certain thresholds it requires a qualified appraisal and a signed appraiser declaration.
What the report contains
- Fair market value of the donated items as of the date of the gift. This is the definition the IRS uses; see which kind of value my report states.
- Descriptions and photographs of each item, with condition as observed.
- The method and data behind the value.
- The appraiser declarations that the form calls for.
I work to the IRS standards for a qualified appraisal, and the report is prepared to USPAP standards, which is the common language the IRS and tax professionals expect. See what USPAP is.
Check the thresholds with your tax preparer
The IRS sets the dollar thresholds, and they can change. Confirm the current thresholds with your tax preparer before you engage me, and tell me what they need. The written scope states what my report does and does not cover.
Timing
The appraisal has to be made close to the date of the gift and received before the return that claims the deduction is filed. If you have a filing deadline, put it in your first message.
How it is billed
A donation appraisal is a flat fee per report, quoted in writing. The fee never depends on the value I reach, which matters here more than anywhere: a fee tied to the value of a tax deduction would be exactly the conflict the rules are designed to prevent.
What I do not do
I do not give tax advice, and I do not choose the charity or take part in the gift. I state the value and how I reached it.