Forms 8282 and 8283, Who is responsible for filing these forms?
By Jamie Graham | Trackback URL Add comments
I had a question posed to me recently about Form 8282, Donee Information Return, and Form 8283, Noncash Charitable Contributions. The question was who is responsible for filing these returns.
Filing of Form 8283, Noncash Charitable Contributions, is the responsibility of the donors (examples – individuals, partnerships and S-Corps). Tax-exempt and non-profit organization (donee organization) need to pay attention to this form and how the donated property was listed either as Section A or Section B property.
Per the IRS, Section A property includes only the following items:
- Items, or groups of similar items, for which the donor claimed a deduction of $5,000 or less per item or group.
- Publicly traded securities even if the deduction is more than $5,000. Publicly traded securities are securities listed on an exchange in which quotations are published daily (New York Stock Exchange NYSE), regularly traded in national or regional over-the-counter markets for which published quotations are available, or shares of a mutual fund for which quotations are published on a daily basis in a newspaper of general circulation throughout the United States.
Section B property (charitable deduction property) includes items, or groups of similar items, for which the donor claimed a tax deduction of more than $5,000. Publicly traded securities listed in Section A are not include in Section B. I do want to make a note that there are special rules for certain C corporations for contributions of inventory or scientific equipment.
Section B items require a written appraisal by a qualified appraiser to be attached for filing. Certain exceptions apply to this rule. The Form 8283 is required to be signed by the donor, the qualified appraiser, and the donee organization (i.e. the non-profit organization receiving the items). The donor should attach this form with their personal/partnership tax return.
Form 8282: Now for the tax-exempt organizations responsibilities…
The not-for-profit organization (NPO) who received the charitable deduction property (donated property) is required to file the Form 8282 if the charitable deduction property was sold or disposed of within 3 years of receiving the property. The Form 8282 is filed with the IRS and a copy is given to the donor.
Now, for those who paid attention to the categories of the property, the Form 8282 is only required to be filed for the property listed in Section B of the Form 8283 (see above). If the NPO received donated items that are not considered Section B items, then the Form 8282 is not required to be filed.
If the NPO did not receive the Form 8283, but has reason to believe they should have received it, then the organization is still required to file the Form 8282.
Exceptions of when Form 8282 does not have to be filed when:
- Section B items had an original appraisal value of $500 or less
- Section B items were used to fulfill the purpose of the tax-exempt organization (i.e. medical supplies used by a tax-exempt relief organization in aiding disaster victims).
If you have further questions, please give me a call.
Categories: Tax ComplianceTags: contributor, In-kind gifts, non-monetary donation
Subscribe by RSS
Very helpful.
I have a question about form 8282. We received a painting that was sold at auction. It sold for $X but we received $Y (it was $X less commission and fees). What amount goes in Section III, line 8? Should it be the gross amount that is sold for ($X) or the net amount that we received ($Y)? Thank you for any assistance.
Great question Melissa.
Per IRS [IRC Sec. 6050L(a)], the amount received on the disposition should be listed on Form 8282 under Section III, line 8. The IRS does not specifically state if the amount received should include the gross amount of the sale or the net amount after selling expenses.
The gross amount should be reflected on line 8. The IRS compares information reported by the donor on Form 8283 with the amounts reported by the donee on Form 8282. Reporting the net proceeds on Form 8282 wouldn’t give a fair valuation for comparison purposes.
Therefore, if the organization sold an asset through an auction house for $20,000 with commissions and fees of $1,000. The organization would receive $19,000 from the sale, but report the full $20,000 of gross proceeds as the amount received upon sale on Form 8282 Section III, line 8.
I read about this on a different website and didn’t see the point, but this post makes it easier to understand. Many thanks!
I just wanted to drop you a line and let you know that I really have enjoyed your well-written articles. I have bookmarked this site and will definitely be checking back for new posts.
I have a question about Form 8283 – two actually.
I donated two rings to a non-profit organization in December of 2009 and now I am trying to figure out what to do with it on turbotax.
Problem #1: I entered in the appraisal information, but it only seems to accept the appraiser’s ss#, not her gemologist i.d. number, or the jeweler’s taxpayer i.d.number. The appraiser is a little uncomfortable with giving me her ss# and I don’t blame her. Is this necessary?
Problem#2: The rings appraised for $6,100, but the lady at the non-profit place advised that I may not want to deduct $6,100, because they usually don’t sell the items for their full appraisal value. So, what do I do? Do I estimate the resale as a percentage of the appraisal value? What happens if I am wrong once they sell the rings and file the 8282? Does the IRS penalize me for guessing?
Thanks in advance…
Jamie
Jamie these are very good questions and hopefully we can provide the following guidance:
1. Form 8283 (Section B – Part III) requires the appraiser’s identification number. The instructions say to include the qualified appraiser’s taxpayer identification number which is either the social security number or employer identification number. The instructions also provide guidance on the types of qualified appraisers.
2. If the donor obtained a qualified (see instructions on qualified) appraisal, he/she may deduct the appraised value. If the property is not used in the Charity’s exempt operations, and sold during 2009, then the charitable deduction is limited to the donor’s tax basis. If the Charity sells or otherwise disposes of the rings within 3 years of the original donation, the donor is required to include as income, the difference between the claimed deduction and the donor’s tax basis. However, there are certain exceptions.
3. If the rings are sold/disposed during the following 3 year period, the Charity reports this information on Form 8282, and a copy of this form should be provided to the donor.
We hope this helps in following the required reporting of contributed property.
What happens on the Form 8282 if only half of the property that was donated is sold, and at a loss from the original appraised value?