Charitable Donation Appraisal Services
Why Make a Non-cash Charitable Donation?
Gathering and displaying beautiful art, unique objects and historical artifacts is part of human nature. Sometimes those objects grace our home for decades or even generations. And sometimes we choose to donate them to a qualifying charitable organization.
Making a non-cash charitable donation not only allows others to enjoy your donated item. It also can provide you with an income tax deduction. To receive your tax deduction, you will likely need a donation appraisal from a qualified personal property appraiser. WorthWise is qualified to meet your donation appraisal needs.
Getting Your Tax Deduction for your Donation
Under the Tax Reform Act of 1986, you can receive an income tax deduction of 100% of the fair market value of any qualifying non-cash charitable contribution or donation. You must make your donation to a qualifying charitable organization that has a mission related to the property being donated. And you must file IRS Form 8283 – Non-cash Charitable Contributions for any non-cash donations valued at over $500.
The IRS requires a written donation appraisal report by a qualified personal property appraiser for any donations you make of paintings, antiques, artifacts and other objects of art for which you plan to claim tax deductions of $5,000 or more. If you plan to claim a deduction of more than $20,000, the donation appraisal report and appraiser qualifications must be attached to the return.
A WorthWise donation appraisal doesn’t just satisfy the documentation requirements of the IRS. It provides you with the unbiased, up-to-date, professional determination of the fair market value of your donated property upon which the amount of your tax deduction can be established.
At WorthWise, we recommend that you get a donation appraisal if you think your items may be worth about $3,000 or more. There can be stiff penalties imposed by the IRS for over-estimating the value of your donations. Getting a donation appraisal is the best way for you to be sure that you are both claiming the right amount for your deduction and that you will have an appraisal in hand if the IRS requires it.
Never assume that the price you paid for your donated property when purchased is equivalent to its fair market value for IRS donation purposes. This is exceedingly rare. More frequently, the fair market value of your property will have increased or decreased over time. The only way to determine the fair market value of your donated property for IRS tax deduction purposes is to get a donation appraisal from a qualified personal property appraiser.