Page 157 - Virtual Currencies

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
property you donated. If the charity did give you Donation less than $5,000. If you give prop- circulation throughout the United States,
any goods or services, the CWA must contain a erty worth less than $250 to charity, you should not later than the last day of the month fol-
description and good faith estimate of goods or obtain a receipt from the charity. The receipt lowing the end of the calendar quarter in
services provided. Goods and services do not should include the charity's name and address, which the computation period ends,
include intangible religious benefits that are not and the date you made the gift. If you give prop- • The issuer or agent keeps books and re-
sold in a commercial setting. erty worth between $250 and $5,000, you must cords that list for each transaction during
obtain a CWA. You must also substantiate the the computation period the date of settle-
Form 8283. You must file a Form 8283 if the FMV you claim for the property. You may need ment of the transaction, the name and ad-
amount of your deduction for each noncash to file a Form 8283. dress of the broker or dealer making the
contribution is more than $500, and when you market in which the transaction occurred,
donate certain publicly traded securities for Deduction over $500 for certain clothing or and the trading price and volume, and
which market quotations are readily available; household items. You must include with your • The issuer or agent permits the IRS to re-
certain intellectual property, like a patent; a ve- return a qualified appraisal prepared by a quali- view the books and records described in
hicle for which you obtained a CWA meeting fied appraiser of any single item of clothing or the above bullet point with respect to trans-
the requirements of section 170(f)(12)(B) (in- any household item that is not in good used actions during the computation period
cluding a car, boat, or airplane) for which your condition or better, and for which you deduct upon receiving reasonable notice.
deduction is limited to the gross proceeds from more than $500. Attach the appraisal and Form An interdealer quotation system is any sys-
its sale; and inventory and other similar property 8283. See Household Items and Used Clothing, tem of general circulation to brokers and deal-
described in section 1221(a)(1). You must also earlier. You must also obtain a CWA for this ers that regularly disseminates quotations of
file a Form 8283 if you have a group of similar donation. obligations by two or more identified brokers or
items for which a total deduction of over $500 is dealers who are not related to either the issuer
claimed. See Form 8283, below. Deductions of More Than or agent who computes the average trading
Similar items of property are items of the $5,000 price of the security. A quotation sheet pre-
same general category or type, such as coin pared and distributed by a broker or dealer in
collections, paintings, books, clothing, jewelry, the regular course of business and containing
nonpublicly traded stock, land, or buildings. Generally, if the claimed deduction for an item only quotations of that broker or dealer is not an
or group of similar items of donated property is
Example. You claimed a deduction of more than $5,000, and was made after Decem- interdealer quotation system.
The average trading price is the average
$600 for inventory, $7,000 for publicly traded ber 31, 1984, you must get a qualified appraisal price of all transactions (weighted by volume),
securities (quotations published daily), and signed and dated by a qualified appraiser, Form other than original issue or redemption transac-
$6,000 for a collection of 15 books ($400 each). 8283, and attach Form 8283 to your tax return. tions, conducted through a U.S. office of a
There are exceptions, discussed later. You
Appraisal. Many, but not all, charitable contri- should keep the appraiser's report with your broker or dealer who maintains a market in the
issue of the security during the computation pe-
butions require a qualified appraisal completed written records. Records are discussed in Pub. riod. Bid and asked quotations are not taken
by a qualified appraiser. See Qualified Ap- 526. You must also obtain a CWA for this dona- into account.
praiser and Qualified Appraisal, later. tion. The computation period is weekly during
A qualified appraisal is not required for the The phrase “similar items” means property October through December and monthly during
donation of: of the same generic category or type (whether January through September. The weekly com-
• Certain publicly traded securities for which or not donated to the same donee), such as putation periods during October through De-
market quotations are readily available; stamps, coins, fine art, books, nonpublicly tra- cember begin with the first Monday in October
• Certain intellectual property, like a patent; ded stock, nonpublicly traded securities other and end with the first Sunday following the last
• A vehicle for which you obtained a CWA than nonpublicly traded stock, land, buildings, Monday in December.
meeting the requirements of section 170(f) clothing, jewelry, furniture, household goods,
(12)(B) (including a car, boat, or airplane) collectibles, or decorative arts. For example, if Deductions of More Than
for which your deduction is limited to the you give books to three schools and you deduct $500,000
gross proceeds from its sale; $2,000, $2,500, and $900, respectively, your
• Inventory and other similar property descri- claimed deduction is more than $5,000 for If you claim a deduction of more than $500,000
bed in section 1221(a)(1); and these books. You must get a qualified appraisal for a donation of property, you must attach a
• Noncash property valued at less than of the books and for each school you must at- qualified appraisal of the property to your return.
$5,000 unless the property is an item of tach a fully completed Form 8283, Section B, to This does not apply to contributions of cash, in-
clothing or a household item that is not in your tax return. ventory, publicly traded stock, or intellectual
good used condition for which you are property.
claiming a value of more than $500. Publicly traded securities. Publicly tra-
ded securities are: If you do not obtain a qualified appraisal
The appraiser's opinion is never more valid • Listed on a stock exchange in which quo- and/or attach the appraisal to your return, if re-
than the facts on which it is based; without tations are published on a daily basis, quired, you cannot deduct your contribution, un-
these facts, it is simply a guess. • Regularly traded in a national or regional less your failure to attach the appraisal is due to
over-the-counter market for which pub-
Even though a qualified appraisal by a quali- lished quotations are available, or reasonable cause and not to willful neglect.
fied appraiser is not required, you must support • Shares of an open-end investment com-
the value you claim for the property you contrib- pany (mutual fund) for which quotations Qualified Appraisal
ute to charity. For property like publicly traded are published on a daily basis in a newspa-
securities for which market quotations are read- per of general circulation throughout the A qualified appraisal is an appraisal document
ily available, you may not need an appraisal by United States. that meets the following requirements.
an appraiser. When you need an appraisal by • The issue is regularly traded during the • Is made, signed, and dated by a qualified
an appraiser to support the value of your deduc- computation period (defined later) in a appraiser (defined later) in accordance
tion, more weight is given to an appraisal by an market for which there is an “interdealer with generally accepted appraisal stand-
appraiser that satisfies most of the require- quotation system” (defined later), ards.
ments of a qualified appraisal by a qualified ap- • The issuer or agent computes the “average • Meets the relevant requirements of Regu-
praiser. trading price” (defined later) for the same lations section 1.170A-17(a).
issue for the computation period, • Is signed by the qualified appraiser and
Cost of appraisals. You may not take a chari- • The average trading price and total volume dated no earlier than 60 days before the
table contribution deduction for fees you pay for of the issue during the computation period date of the contribution and no later than
appraisals of your donated property. are published in a newspaper of general the due date, including extensions, of the
Publication 561 (January 2023) Page 9