Noncash
Charitable Contributions
Recent changes affect your contribution deduction
For most noncash charitable
contributions made after June 3, 2004, you must satisfy certain reporting
requirements based on the value of the deduction.
For contributions that are more than
$5,000, you must obtain a qualified appraisal and attach Form 8283,
Noncash Charitable Contributions, to your tax return. For claimed
contributions of more than $500,000 (if artwork, $20,000 or more), you
must also attach a copy of the appraisal to your tax return.
You should also note that the American Jobs Creation Act of 2004 altered
the rules for contributions of used motor vehicles, boats, and planes
after December 31, 2004. For donations made after that date, if the
claimed value of the donated motor vehicle, boat, or plane exceeds $500,
and the item is sold by the charitable organization, you are limited to
the gross proceeds from the sale of that vehicle by the charitable
organization.
For all claimed charitable contributions of $250
or more, a taxpayer must have a receipt or a letter from the receiving
charity acknowledging the gift. That letter must be in your files
prior to the date you file your return.
