Ask an Instructor: IRS Form 8283
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Tuesday, February 18, 2020 in Ask an Instructor
ISA members are invited to send in their questions on all things appraising and education to ISA's instructors. One of ISA's instructors will share answers on the ISA Blog. Please send questions to directorofeducation@isa-appraisers.org.
Question: Item #36 on the 2020 ISA checklist says that I need to include a "statement as to how IRS Form 8283 is being handled, if the form is needed." How do I do this? Can you help me with some language to use in my report?
Answer: First, let’s go over when an appraiser becomes involved with the IRS Form 8283. A written appraisal by a qualified appraiser is required when the item or group of similar items being donated to a qualified charitable organization is valued at more than $5000. The donor, the appraiser, and the donee must then complete their appropriate parts of Section B on the IRS Form 8283. (Note: Form 8283, Section B must also be completed and accompanied by a qualified appraisal from a qualified appraiser if the donor is contributing a single article of clothing or household item over $500 that is not in good used condition.)
ISA asks its members to include a statement in their appraisal report on how the 8382 form is being handled. It is up to the appraiser to make a business decision on how they want to manage the signing of the 8283 form with their client. It does not matter who signs the form first, second, or third, as long as all three parties (the donor, the appraiser, and the donee) sign their designated part prior to the form being officially filed by the donor.
Below is one example of how an appraiser might explain how to handle Form 8283:
"For non-cash charitable contributions in excess of $5,000, Section B of IRS Form 8283 must be completed and attached to your federal income tax return. The form has sections that must be completed and signed not only by the taxpayer, but also by the appraiser and the donee. For your convenience, I have enclosed a copy of Form 8283 on which I have completed Section B, Part 1, columns 5a, b, and c, and Part III. Please complete and sign Part I and II, have the donee complete and sign Part IV, and then provide the form to your tax preparer for submission to the IRS."
Another example might be:
"You [the client/donor] are responsible for obtaining and filing the appropriate section of IRS Form 8283. Please complete Section B, Parts I and II, and send a copy of this form to my attention for completion of Section B, Part III. I will then forward the form to the museum to complete and sign Part IV. The museum will then return the completed form to you so that you can attach the form to your federal income tax return."
The Instructions for IRS Form 8283 are very helpful not only to the donor, but also to the appraiser. The form and instructions were revised in November 2019, so make sure you are using the correct form. It wouldn’t hurt to take a quick moment to re-read the relevant sections of the instructions as a refresher.