A Form 8283 appraisal is a necessary step for individuals and organizations who make non-cash charitable contributions to qualified organizations. It is used to determine the fair market value of the donated property, which is then reported on the individual’s or organization’s tax return. This form is required by the Internal Revenue Service (IRS) when the donated property exceeds a certain dollar value threshold.
The purpose of the Form 8283 appraisal is to prevent overvaluation of donated property, which can result in a higher tax deduction than is warranted. The appraisal process is typically conducted by a qualified appraiser, who must adhere to specific guidelines and regulations set forth by the IRS. The appraiser must provide a detailed description of the donated property, including its physical condition and any special characteristics that may affect its value.
The appraiser must also provide an explanation of the methodology used to arrive at the fair market value of the donated property. This may include a comparison to similar items that have sold recently, an analysis of current market trends, or other relevant factors that may impact the value of the property. Once the appraisal is complete, the appraiser will sign the docuemnt to attest to the accuracy of the valuation.
It is important to note that the IRS may review the Form 8283 appraisal to ensure that it is accurate and meets all relevant requirements. Failure to provide a proper appraisal can result in the disallowance of the charitable deduction, as well as penalties and interest. Therefore, it is essential to work with a qualified appraiser who is knowledgeable about the requirements for completing the appraisal.
Truman Mox is qualified to perform a Form 8283 Charitable Donation Appraisal. We worked across several industries and with several charitable organizations.