IRS CONTRIBUTION DEDUCTIONS GUIDELINES
This section provides general information about the Internal Revenue Service (IRS) regulations governing income tax deductions for gifts of property to charitable organizations such as the Silver City Gospel Mission.
Listed below are general guidelines. Always check for updates with IRS.
When a taxpayer donates property and claims a charitable deduction, he or she must prove that the donation was made, and establish how much the donated property was worth at the time of contribution. The Thrift Shop cannot place a value on the goods even if requested by the donor to do so.
** Determining the fair market value **of a gift of property remains the responsibility of the donor.
The Thrift Shop staff will provide a receipt that meets the IRS written substantiation requirements for donations.
CONTRIBUTION WORTH $500 OR LESS
If the donated merchandise is worth less than $500, you simply list the amount on your 1040’s Schedule A and substantiate your deduction with a receipt from the Thrift Shop. This receipt must include the date and a general description of the property. When you make your donation(s), please request your receipt before leaving the Shop.
MORE THAN $500, BUT NOT OVER $5,000
If you report donations worth more than $500, you have to fill out IRS form 8283. On this, you have to identify and value the items — noting approximately when you bought them, and approximately how much you paid for them.
The donor is not required to submit this form to the Thrift Shop, nor should the Thrift Shop staff sign or complete this form unless the donor’s total claimed charitable deductions are more than $5,000. This is strictly a requirement of the donor.
MORE THAN $5,000
Any single item worth more than $5000, requires an independent appraisal.
The donor is required to submit two copies of the appraisal summary, IRS Form 8283, Section B to The Thrift Shop along with the donated property. The Thrift Shop will complete Part IV of Section B of both 8283 forms. The Thrift Shop must keep one copy on file and return the other copy to the donor.
For an idea of what your donation may be worth at Fair market Value of donated items, please see this example.No tags for this post.