Unfortunately, the IRS doesn’t offer its own app for donation appraisals. However, they do have specific guidelines and requirements for valuing donated items for tax purposes. Here’s what you need to know:
When do you need an appraisal?
- You generally need a qualified appraisal for any donated item valued at more than $5,000. This applies to non-cash donations like clothing, furniture, or electronics.
- For art valued at $50,000 or more, you can request a Statement of Value from the IRS, but it comes with a fee.
What is a qualified appraisal?
- It’s a written document prepared by a qualified appraiser who meets the IRS standards.
- The appraisal should follow generally accepted appraisal standards and provide details about the item’s value, condition, and relevant market data.
Where to find a qualified appraiser?
- You can search professional organizations like the Appraisal Foundation or the American Society of Appraisers.
- Be sure to choose an appraiser who specializes in the type of item you’re donating.
Additional resources:
- Collectorpro Software: https://collectorpro.com
- Publication 561: https://www.irs.gov/pub/irs-pdf/p561.pdf
- Instructions for Form 8283: https://www.irs.gov/pub/irs-pdf/i8283.pdf
- Art Appraisal Services: https://www.irs.gov/appeals/art-appraisal-services
Remember:
- It’s always best to consult with a tax professional for specific advice on your situation.
- Keep all documentation related to your donation, including the appraisal, for at least seven years.
- The IRS changes requirements from time to time so verify what you need to do to comply
