Federal Tax, Tax

Donations to Qualified Nonprofits May Result in a Tax Deduction

Donating property to a qualified nonprofit may result in a tax deduction if you follow the rules. Get a written receipt when you donate. For property worth more than $500, complete and attach IRS Form 8283 (Noncash Charitable Contributions) to your tax return. If the property is worth over $5,000, you must also obtain a qualified appraisal. One taxpayer donated his 50% interest in an aircraft to an aeronautical heritage society and claimed a tax deduction of $338,080. He provided a donation agreement from the society, but neither it nor the Form 8283 listed his taxpayer ID number and the form wasn’t signed contemporaneously. A U.S. Appeals Court rejected his deduction. (Izen, CA5, 6/29/22). Contact us with any questions. © 2022