When you donate property other than cash—such as clothing, furniture, artwork, or even stocks—to a qualified charity, you may be eligible for a valuable tax deduction. However, to claim this deduction, the IRS requires that you report non-cash donations properly, especially when their total value exceeds $500. This is where Form 8283 – Noncash Charitable Contributions comes in.
In this detailed blog, we’ll explain what Form 8283 is, when you need to file it, how to complete it correctly, and what records and valuations are necessary to substantiate your donation. Filing this form properly ensures compliance and helps you get the most out of your charitable giving.
What Is Form 8283?
Form 8283 is used by individual taxpayers, partnerships, and corporations (except C corporations) to report non-cash charitable contributions greater than $500 in total for the tax year. This includes donated items like:
- Clothing and household goods
- Vehicles and boats
- Artwork and collectibles
- Stocks, bonds, or mutual funds
- Real estate or land
- Business equipment
The IRS uses this form to ensure taxpayers aren’t inflating donation values and to verify whether appraisals were used. Failing to file Form 8283 when required can result in disallowed deductions or IRS penalties.
When Do You Need to File Form 8283?
You are required to file Form 8283 with your tax return if the total of your non-cash contributions exceeds $500 during the year. The form consists of two main sections:
- Section A – For donations valued at more than $500 but not more than $5,000 (per item or group of similar items)
- Section B – For donations of a single item or group of similar items valued over $5,000 (requires a qualified appraisal in most cases)
Qualified Organizations
You can only deduct non-cash donations made to IRS-recognized qualified charitable organizations. These include:
- 501(c)(3) public charities
- Religious organizations
- Educational institutions
- Government units
- Nonprofit hospitals
You can verify the status of an organization using the IRS Tax Exempt Organization Search tool.
Section A – Contributions $501 to $5,000
If the total fair market value of the items you donated falls between $501 and $5,000, you must fill out Section A of Form 8283. This section requires:
- A description of each donated item or group of similar items
- The date and method of acquisition
- Your cost or adjusted basis in the item(s)
- The fair market value at the time of donation
- The method used to determine fair market value (e.g., thrift shop value, online pricing)
Examples of items reported in Section A include used clothing, used furniture, electronics, or small art pieces valued under $5,000 each.
Section B – Contributions Over $5,000
If any single item (or group of similar items) you donate is worth more than $5,000, Section B must be completed, and you generally must obtain a qualified appraisal. This section requires:
- A detailed description of the donated item(s)
- Identification of the appraiser and the appraisal summary
- Signature of the appraiser
- Signature of the charitable organization (donee acknowledgment)
Examples of items reported in Section B include artwork, valuable jewelry, real estate, collectibles, and high-value stocks (in large lots).
Appraisal Requirements
A qualified appraisal is generally required for non-cash donations of over $5,000. The appraisal must:
- Be completed by a qualified appraiser (as defined by the IRS)
- Be dated no more than 60 days before the donation
- Include detailed item descriptions, valuation methodology, and supporting evidence
Attach the appraisal to your tax return only if you’re claiming a deduction for artwork over $20,000 or any item over $500,000.
Filing and Documentation Requirements
Along with Form 8283, you should keep thorough records in case the IRS asks for additional documentation. Required records may include:
- Receipts from the charitable organization (with name, date, and description of items)
- Photos of donated property
- Evidence of purchase or cost basis
- Appraisal documentation (for items over $5,000)
- Written acknowledgment from the charity for donations over $250
Tips to Maximize Your Deduction
- Itemize your deductions: You can only claim non-cash contributions if you itemize on Schedule A.
- Keep item-level records: Don’t just report bulk donations—itemize contents if feasible.
- Use fair market value: Value your donations realistically based on resale or thrift shop prices.
- Group similar items: If you donate multiple similar items (e.g., books, suits), group them together for reporting.
- Consult a tax professional: Especially for high-value items or property donations requiring appraisals.
Special Considerations
Here are a few additional scenarios that may affect Form 8283 reporting:
- Stock Donations: You generally report the fair market value of the stock on the date of donation. For publicly traded securities, appraisal is not required regardless of value.
- Vehicle Donations: If valued over $500, special rules and IRS Form 1098-C may apply.
- Used Property: The IRS requires that items like clothing or furniture be in good condition or better unless the value is over $500 and you include an appraisal.
Where to Get Form 8283
You can download the latest version of Form 8283 and its instructions directly from the IRS:
Conclusion: Be Diligent, Be Generous, and Be Compliant
Donating goods to charity not only supports worthwhile causes but can also lower your tax liability. However, proper documentation and accurate reporting are essential to secure your deductions and avoid issues with the IRS.
Form 8283 provides a structured way to report non-cash donations that exceed $500. Whether you’re giving away clothing, furniture, vehicles, or appreciated assets, completing the form accurately and gathering supporting records ensures your generosity is rewarded with a tax benefit.
When in doubt—especially for high-value or complex donations—consult with a tax advisor to make sure your deductions are compliant and maximized.
