Charitable contributions are deductible when the taxpayer itemizes deductions on Schedule A, Form 1040. To be deductible, a charitable contribution must be made to a qualified organization. Refer to Publication 526 for the definition of "qualified organization".
If the contribution entitled the taxpayer to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, they can deduct only the amount that exceeds the fair market value of the benefit received. For a contribution of cash, check, or other monetary gift (regardless of amount), the taxpayer must maintain as a record of the contribution either a bank record or a written communication from the qualified organization containing the date and amount of the contribution and the name of the organization.
The taxpayer can generally deduct the fair market value of any property they donate to a qualified organization. For information on determining the property's value, refer to Publication 561.
For any single contribution of $250 or more (including contributions of cash or property), the taxpayer must obtain a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and/or a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift.
You must complete Form 8283 and attach it to the return if the total deduction for all noncash contributions is more than $500. If the taxpayer is claiming a deduction for a contribution of noncash property worth $5,000 or less, you must complete Section A of Form 8283. If they are claiming a deduction for a contribution of noncash property worth more than $5,000, they need to supply a qualified appraisal of the noncash property and you will need to complete Section B of Form 8283 using the information in the appraisal. If the taxpayer is claiming a deduction for a contribution of noncash property worth more than $500,000, you will also need to attach the qualified appraisal to the tax return.
When completing either Section A or Section B, every field must be completed. Note that while "Various" is allowable for the date the property was acquired, the date of the contribution must be specified.
To complete Form 8283 for noncash charitable contributions, from the Main Menu of the tax return (Form 1040) select:
- Itemized Deductions
- Gifts to Charity (8283)
- Non-Cash More than $500 - 8283
- Section A: Donated Property of $5,000 or Less
Section B: Donated Property over $5,000 - Select the appropriate section and enter the information needed.
Note: This is a guide on entering noncash charitable contributions into the TaxSlayer Pro program. This is not intended as tax advice.