Every year, donors give millions of dollars in goods, vehicles, art, and digital assets to charity. If your total deduction for noncash gifts exceeds $500, the IRS requires Form 8283: Noncash Charitable Contributions to be filed with your federal return. This form serves as the government’s audit trail, allowing the IRS to verify that your deduction is justified and properly documented.
Filing mistakes or incomplete information are among the top reasons the Service denies deductions, so understanding this form is critical. In large contribution states like California, New York and Minnesota, state‑level limits can further reduce or delay deductions, so careful compliance protects your federal and state tax benefits.
Learn What You’ll Gain 📘
- Understand Sections A and B: Learn who must complete each section, which properties belong where, and why digital assets and intellectual property often require a qualified appraisal.
- Avoid Common Audit Triggers: Discover the documentation missteps that caused recent court cases to collapse—including incomplete receipts, missing appraiser signatures, or undisclosed basis amounts—and how to avoid them.
- Navigate State Rules: See how high‑tax states limit charitable deductions and how to time contributions to preserve your state and federal benefits.
- Master Qualified Appraisals: Understand when an appraisal is mandatory, who qualifies as an appraiser, and what must be included in the appraisal report.
- Get Practical Examples: Follow step‑by‑step scenarios that illustrate how to complete each part of Form 8283 for donations of clothing, vehicles, crypto assets, and art.
What Is Form 8283?
Form 8283 is an IRS document used to report noncash donations of property worth more than $500. Individuals, partnerships, corporations and passthrough entities file this form with their tax returns when they claim deductions for donated personal property, real estate, vehicles, collectibles, digital assets, intellectual property, or similar items. The form is divided into two key sections—Section A and Section B—that determine the level of detail and documentation required. Failing to complete the appropriate section or omitting required information can cause the IRS to disallow the entire deduction.
When Form 8283 Is Required
- Individual donors: If the total deduction for noncash contributions is over $500 (before AGI limits), Form 8283 must accompany the return.
- C corporations: Only file when an individual item or group of similar items exceeds $5,000; otherwise, Section A may not be required.
- Pass‑through entities: Partnerships and S corporations file whenever a noncash contribution exceeds $500. Each member must attach the entity’s completed form to their personal return and file a separate Form 8283 reporting their allocable share.
- Multiple similar items: Similar items (e.g., a series of donated books or clothing) are treated as a single property for threshold purposes. If the combined value exceeds $500 (or $5,000 for Section B), a single form may cover the group.
Key Terms and Entities
- Donee: The qualified charitable organization receiving the property.
- Donor: The individual or business claiming the deduction.
- Qualified Appraiser: An individual who meets education and experience standards, has no prohibited relationships to the parties, and has signed a declaration acknowledging potential penalties for valuation misstatements.
- Qualified Appraisal: A written report prepared by a qualified appraiser no earlier than 60 days before the contribution and meeting strict content requirements.
- Fair Market Value (FMV): The price a willing buyer and seller would agree upon when neither is under compulsion to act and both have reasonable knowledge of the relevant facts.
- Contemporaneous Written Acknowledgment (CWA): A receipt from the donee that includes the donor’s name, the date and location of the contribution, a description of the property, and a statement about any goods or services provided in return.
Section A – Donations Worth $500–$5,000 and Special Cases
When to Use Section A
Section A is used for each noncash property donation exceeding $500 but not more than $5,000 per item (or per group of similar items). It must also be used for certain items regardless of value—notably publicly traded securities, intellectual property, vehicles for which the deduction is limited to gross sales proceeds, and inventory. Even if the FMV exceeds $5,000, these items never belong in Section B.
Completing Section A: Required Lines
- Description of the donated property: Provide enough detail so that someone unfamiliar with the property can identify it. For vehicles include the VIN; for digital assets specify the token symbol and transaction hash.
- Date and manner of acquisition: State when and how the property was obtained (purchase, gift, inheritance, or creation). If multiple items were acquired over time, the term “Various” is acceptable for long‑held property.
- Cost or adjusted basis: Indicate your original cost. If the property was inherited or received by gift, show the carryover basis (the decedent’s basis or donor’s basis).
- Fair market value at donation: Describe how you determined FMV—comparable sales data, online marketplaces, used vehicle guides, or similar evidence.
- Method used to determine FMV: Briefly note the valuation approach (market comparison, replacement cost, or income method).
- Donor signature: You must sign Section A, Part I; the donee’s signature isn’t required here.
Example: Donating Used Clothing
Scenario: Jane donates ten gently used suits to Goodwill with a combined estimated FMV of $800. She bought the suits over several years for $4,000.
How to fill Section A:
- Item description: List each suit with the brand, style, and condition.
- Date acquired: “Various.”
- How acquired: “Purchase.”
- Cost or basis: Enter $4,000.
- FMV: Enter $800.
- Method: “Comparable thrift store sales and charity valuation guides.”
Jane must also have a CWA from Goodwill that lists the date, location, and description of the suits and states that no goods or services were provided. Because the value is under $5,000, no appraisal is required.
Publicly Traded Securities Example
If you donate 100 shares of a publicly traded stock worth $10,000 on the date of donation, you still use Section A. Provide the company name, share count, acquisition date, and cost basis. FMV is based on the average of the high and low trading prices on the donation date. Even though the value exceeds $5,000, publicly traded securities remain in Section A because their market value is easily verifiable.
Section B – Donations Over $5,000 Requiring Appraisal
What Belongs in Section B
Section B covers donations of a single item or group of similar items valued over $5,000 (other than exceptions noted earlier). This includes artwork, collectibles, private company stock, nonpublicly traded securities, real estate, digital assets like cryptocurrency and NFTs, and many vehicles that are not subject to the gross proceeds limitation. The IRS requires a qualified appraisal for these contributions, unless the property is publicly traded or falls under another exemption. Failures to obtain or attach a qualified appraisal have repeatedly led to disallowed deductions in court cases.
Parts of Section B
- Part I – Information on Donated Property: Provide a detailed description, a summary of its physical condition (for tangible property), the appraised FMV, date acquired, manner of acquisition, cost or adjusted basis, amount realized if partly sold (bargain sale), and relevant basis for conservation easements.
- Part II – Partial Interests and Restricted Use Property: Describe any partial interests donated (e.g., conservation easements or life estates).
- Part III – Declaration of Appraiser: Must be signed and dated by the qualified appraiser. It includes the appraiser’s name, address, taxpayer ID, qualifications, valuation date, method used, and a declaration acknowledging penalties for misstatements.
- Part IV – Donee Acknowledgment: Signed by an authorized representative of the charity, providing its name, address, and employer identification number. This signature is mandatory.
- Part V – Appraisal Summary: For contributions over $5,000 but not more than $500,000, attach the summary portion. For contributions exceeding $500,000, include a copy of the full qualified appraisal with the tax return.
Example: Donating Artwork
Scenario: Mark donates a painting to a museum. He purchased it for $8,000 in 2010. An appraiser values it at $20,000 in 2025.
How to fill Section B:
- Part I: Describe the painting (title, artist, medium, dimensions), condition (e.g., “excellent, professionally framed”), appraised FMV ($20,000), acquisition date (2010), acquisition method (“purchase”), basis ($8,000), and any bargain sale amount (none).
- Qualified appraisal: Obtain an appraisal signed by a qualified art appraiser no earlier than 60 days before donation and attach it (since FMV > $5,000).
- Part III: Ensure the appraiser signs the declaration and includes all required elements (detailed description, valuation date, FMV, methodology, certification statement).
- Part IV: Have the museum representative sign to acknowledge receipt.
Example: Donating Cryptocurrency
Scenario: Emily donates 2 Bitcoin to a public charity. The coins were purchased in 2018. On the donation date the average market price per Bitcoin is $30,000, so the total FMV is $60,000.
Steps:
- Determine FMV: Use a qualified appraisal. Although exchange rates are publicly visible, digital assets are not considered publicly traded securities. Therefore, Emily must obtain a qualified appraisal of the 2 Bitcoin from a qualified appraiser who specializes in digital assets.
- Complete Section B: Provide a detailed description (cryptocurrency type, quantity, wallet addresses), FMV ($60,000), acquisition date (2018), method (“purchase”), basis (purchase price).
- Attach appraisal: Since FMV exceeds $5,000 but is under $500,000, attach the appraisal summary and keep the full report for records.
- Donee signature: Obtain the charity’s signature in Part IV.
Special Rules for Intellectual Property Donations
If you donate patents, copyrights, trade secrets or similar intellectual property, your deduction for the year of contribution is limited to the lesser of FMV or your adjusted basis. Additional deductions may be available in subsequent years based on a percentage of the donee’s net income from the property. The fair market value must be reduced accordingly, and you should track any income reported to you on Form 8899. Section A is used for intellectual property, regardless of value, and no appraisal is required if the property qualifies for the exception.
Vehicle Donations Above $5,000
Vehicles donated for which the deduction is not limited to gross sales proceeds (e.g., when the charity plans to use or materially improve the vehicle) must be reported in Section B. Attach the CWA or Form 1098‑C from the charity along with Form 8283. Provide details such as the make, model, year, VIN, mileage, condition, acquisition date, basis, and appraised value. If the deduction is limited to the gross proceeds from sale, use Section A instead.
Important Documentation Requirements
Strict documentation is critical. Courts consistently deny deductions when donors omit required details. Keep the following in mind:
- Receipts and CWA: For contributions of $250 or more, you must have a contemporaneous written acknowledgment from the charity. It should state the donor’s name, date and location of donation, description of the property, and whether any goods or services were provided.
- Noncash donations over $500: Fully complete Form 8283; for Section A provide acquisition dates, cost or basis, FMV and method of valuation.
- Donations over $5,000: Obtain a qualified appraisal and complete Section B. The appraiser must meet IRS qualifications and sign the form. The donee must also sign. If the FMV exceeds $500,000, attach the entire appraisal to your tax return.
- Pass‑through entities: Members of partnerships or S corporations must attach the entity’s Form 8283, along with any intermediate entities’ forms, and file their own Form 8283 reporting their share.
Pros and Cons Table for Donors
| Aspect | Description |
|---|---|
| Pros of filing Form 8283 correctly | Enables donors to claim substantial deductions, reducing federal and state taxes; fosters transparency and compliance; allows donors to support charities with noncash gifts without losing tax benefits; may increase the tax value of high‑appreciation assets when FMV exceeds basis; proper appraisals can withstand audits. |
| Cons of noncompliance | Failure to meet documentation requirements can disallow the entire deduction; appraisals and professional help can be costly; errors may trigger audits; donors may owe penalties and interest; underreporting or misstatement of value may expose appraisers to penalties and donors to potential valuation misstatement penalties. |
Top Use Cases for Form 8283
| Use Case | Requirements |
|---|---|
| Individual Donor of Household Goods ($500–$5,000) | Complete Section A; list descriptions, acquisition dates, cost basis and FMV; obtain CWA; attach form to personal return. |
| Corporate Donor of Nonpublic Stock Worth $50,000 | Complete Section B; obtain a qualified appraisal; ensure appraiser and corporate officer sign; attach summary; keep full appraisal; ensure donee signs. |
| Estate Planner Advising on Art Donation ($500,000+) | Recommend qualified appraisal; donor must attach full appraisal; Section B must be fully completed; ensure donee acknowledges; note state‑level AGI limits and potential estate tax implications. |
Common Mistakes to Avoid ❌
- Incomplete descriptions: IRS examiners disallow deductions when donors fail to describe each item or provide sufficient detail. Always include the physical condition for tangible items.
- Missing or unsigned appraisals: Section B must include a signed declaration by a qualified appraiser; the appraiser cannot be the donor, donee, or a related party.
- Omitting cost basis: Failure to disclose the cost or adjusted basis is a frequent reason deductions are denied. If you cannot ascertain basis (e.g., inherited property), note that and provide an explanation.
- No contemporaneous written acknowledgment: Donations of $250 or more require a CWA before filing the return. Without it, the deduction is automatically denied.
- Using improper FMV sources: For digital assets, using exchange prices alone is insufficient; a qualified appraisal is mandatory. Similarly, using insured value for jewelry or replacement cost may inflate FMV.
- Grouping dissimilar items: Do not combine unrelated items to avoid the appraisal threshold. “Similar items” must be items of the same type.
State‑Level Nuances in High‑Donation States
While Form 8283 is a federal requirement, state income tax rules can limit or enhance the benefit of your deduction:
- California: High‑income taxpayers may see their state itemized deductions reduced by 6 percent of AGI above a certain threshold, with reductions capped at 80 percent of itemized deductions. Large charitable contributions may not yield full state benefits when income is high.
- New York: For AGI above $10 million, itemized charitable deductions may be reduced by up to 75 percent; for AGI between $1 million and $10 million, the reduction can reach 50 percent. Timing donations across years can help maximize state benefit.
- Colorado: Itemized deductions are capped at $12,000 for single filers and $16,000 for married filing jointly if AGI exceeds certain thresholds, limiting the state benefit of large noncash donations.
- Minnesota: Charitable deductions may be reduced by 80 percent if AGI exceeds approximately $1.05 million. Donors may benefit from electing the state charitable credit instead of itemizing.
- Hawaii, District of Columbia and Virginia: Itemized deductions decline as AGI rises, reducing the marginal benefit of large charitable gifts.
These limitations mean that donors should coordinate federal and state tax planning. In some cases, splitting donations across multiple years or gifting through a donor‑advised fund may preserve more of the state benefit.
Audit Triggers and IRS Scrutiny
The IRS targets noncash charitable contributions for audit because of common valuation errors and fraud. To avoid red flags:
- File a complete Form 8283: Ensure that every line and required signature is completed. Regulations now explicitly state that incomplete forms will not be processed.
- Use reputable appraisers: Qualified appraisers must have professional designations or meet education and experience requirements. They must not be donors, donees or related parties.
- Avoid inflated valuations: The IRS and courts have repeatedly denied deductions when valuations are based on replacement or insurance values rather than market prices. Misstatements of value may result in penalties.
- Maintain records: Keep purchase receipts, photographs and appraisals. In the Besaw and Cade cases, the courts disallowed deductions because donors lacked contemporaneous documentation or used unqualified appraisers.
- Be cautious with conservation easements: Pass‑through entities face strict rules, including a potential 2.5‑times basis limitation and a $500 filing fee for historic building easements. Ensure easement deeds and appraisals meet regulatory requirements.
Frequently Asked Questions (FAQs)
1. What counts as a noncash charitable contribution?
It includes donations of physical items (clothing, furniture, vehicles), real estate, stocks, collectibles, digital assets, and intellectual property. Cash or credit‑card gifts are not reported on Form 8283.
2. Do I need a qualified appraisal for my cryptocurrency gift?
Yes. Digital assets like cryptocurrency and NFTs are not publicly traded securities, so donations over $5,000 require a qualified appraisal and must be reported in Section B.
3. What happens if I don’t include my cost basis on Form 8283?
The IRS may disallow your deduction. You must disclose your cost or adjusted basis (or explain why it’s not available) for each donated item.
4. Can I combine different items to stay below $5,000?
No. Similar items must be grouped together; if their combined FMV exceeds $5,000, Section B and a qualified appraisal are required.
5. Does a charity have to sign my form for all donations?
Only for Section B donations (over $5,000). The donee’s signature acknowledges receipt and is mandatory. Section A donations do not require a donee signature.
6. What is a contemporaneous written acknowledgment (CWA)?
It’s a document from the charity describing the donation, stating whether any goods or services were provided, and must be received by the donor before filing the tax return.
7. Do I attach the appraisal to my return for donations over $5,000?
Attach the appraisal summary (Form 8283) for donations between $5,000 and $500,000. For donations over $500,000, include the full qualified appraisal with your return.
8. How do pass‑through entities report noncash contributions?
The entity files Form 8283 and passes copies down to members. Each member attaches the entity’s form and files their own Form 8283 reporting their share and the basis information.
9. Can I deduct the cost of hiring an appraiser?
No. Appraisal fees are not deductible as charitable contributions. They may be deductible as miscellaneous itemized deductions subject to AGI thresholds if itemization is allowed.
10. Does the IRS accept exchange prices for crypto gifts?
No. Exchange prices are insufficient; you need a qualified appraisal from a qualified appraiser to value digital assets.
11. Can I carry forward excess noncash deductions?
Yes. If your deduction exceeds the annual AGI limitation (typically 30% or 50% of AGI depending on the asset type), unused amounts may be carried forward for up to five years.
12. Are there penalties for overvaluing property?
Yes. Significant or gross valuation misstatements can result in penalties up to 40% of the underpayment. Appraisers may also be fined and barred from practice for misstatements.
13. Do state rules affect my deduction?
Yes. Several states reduce itemized deductions for high‑income taxpayers. Plan donations with state limitations in mind to maximize tax benefits.
14. Is donating appreciated property better than selling and donating cash?
Often yes. Donating appreciated property lets you avoid capital gain tax and deduct the FMV. However, the deduction may be limited to basis if the property is ordinary income property or short‑term capital gain property.
15. Can a donor claim a deduction for services rendered?
No. Time or labor donated is not deductible. Only unreimbursed expenses or property donations qualify.
16. Is a taxpayer’s own valuation of property acceptable?
Only for items under $5,000. For items over $5,000 (except publicly traded securities and some vehicles), a qualified appraisal is mandatory.
17. What qualifies as a similar item?
Items of the same general category, such as all books or all clothing. Combined valuation thresholds apply to similar items.
18. Do I need Form 8283 for a $600 donation of widely traded stock?
Yes. Although publicly traded securities are easy to value, donations over $500 must still be reported on Form 8283, Section A.
19. What if my charity refuses to sign Section B?
Your deduction will be denied. Ensure the charity is willing to sign before making the donation, and provide the form for signature promptly.
20. How long should I keep records?
Keep all receipts, CWAs, appraisals and forms for at least three years after the date you file the return or the date your carryovers expire. In cases involving basis issues, retain documents for as long as the asset might affect tax obligations.