I hate Form 8283

[jasdlm]

REALLY hate it.  I want to fire clients who make 17 trips to Goodwill every year.

 

I get that the charities need the items, but I HATE this form.

[JohnH]

I think the value should be based on a per-pound average. They could just weigh each bag when it's delivered and write that on the ticket. A good value would probablly be 82.83 cents per pound - easy to remember, and probably as accurate as any other method.

Edited March 13, 2015 by JohnH

[Randall]

Yes, I hate it when they come in over $500.  Ugh.

[mrichman333]

I had a customer who had to put mom in a nursing home and donated EVERYTHING in her home

[Abby Normal]

I do like the way ATX revamped the form this year, though.

 

Also, if someone has 5 Goodwill receipts, we just enter it all as one. If it doesn't change the tax, who cares.

[jasdlm]

I dutifully enter them individually because of the 'date of contribution' varying.  Maybe I'm making it harder than it is.

 

I really hate this form.

[Abby Normal]

All mine are dated 12/31/YY. Dates don't change taxable income.

[mcb39]

I hade a customer who had to put mom in a nursing home and donated EVERYTHING in her home

 

I know of what you speak.  Except that this mom died.  They had every single item itemized; so who am I to complain except had to tell them they couldn't go over $5000 without an appraisal.

[Max W]

I know of what you speak.  Except that this mom died.  They had every single item itemized; so who am I to complain except had to tell them they couldn't go over $5000 without an appraisal.

If individual items are less than $5000, they do not to be appraise even if the total is greater than $5K.  

 

Section B. Include in Section B only items (or groups of similar items) for which you claimed a deduction of more than $5,000. Do not include publicly traded securities reportable in Section A. With certain exceptions, items reportable in Section B require a written appraisal by a qualified appraiser. You must file a separate Form 8283, Section B, for each donee organization and each item of property (or group of similar items). Similar Items of Property Similar items of property are items of the same generic category or type, such as coin collections, paintings, books, clothing, jewelry, nonpublicly traded stock, land, or buildings. Example. You claimed a deduction of $400 for clothing, $7,000 for publicly traded securities (quotations published daily), and $6,000 for a collection of 15 books ($400 each). Report the clothing and securities in Section A and the books (a group of similar items) in Section B.  

from http://www.irs.gov/pub/irs-pdf/i8283.pdf

[Abby Normal]

If individual items are less than $5000, they do not to be appraise even if the total is greater than $5K.  

 

So are you saying you could group furniture, clothing, electronics, appliances in separate groups and if each group is under 5K you're ok to skip the appraisal?

[Catherine]

I have a few clients who regularly donate goods.  I get the donation slip with value, and appended to that  LONG list of what they donated and what they valued the stuff for.  While the items themselves are not valued incorrectly (that I can tell from a quick perusal), the totals get impressive.  $700, $1200, like that.  I won't even take slips with no value from the client.

[kcjenkins]

So are you saying you could group furniture, clothing, electronics, appliances in separate groups and if each group is under 5K you're ok to skip the appraisal?

Yes.  But hopefully they took pictures, etc,  Ups the odds of an audit, but if you believe them, and they understand that fact, you should take it.

[Abby Normal]

Yes.  But hopefully they took pictures, etc,  Ups the odds of an audit, but if you believe them, and they understand that fact, you should take it.

Thanks!

[mcb39]

Yes.  But hopefully they took pictures, etc,  Ups the odds of an audit, but if you believe them, and they understand that fact, you should take it.

 

After the fact, they have seldom taken pictures.  Of course, they never call and ask beforehand what they should do.  Without pictures, I would not take that chance.

[michaelmars]

back when my mom died I was using atx and it wouldn't let me efile with a value over 5k so I broke it down into separate donations, of around 4500 each till I got to the full value. clothing, dining room furniture, bedroom furniture, you get the picture.

 

as for the clients that make numerous donations to the same organization, I usually lump them.

[Randall]

I'll lump several with close dates.

[Jack from Ohio]

back when my mom died I was using atx and it wouldn't let me efile with a value over 5k so I broke it down into separate donations, of around 4500 each till I got to the full value. clothing, dining room furniture, bedroom furniture, you get the picture.

 

as for the clients that make numerous donations to the same organization, I usually lump them.

However, the regulation says TOTAL contribution(s) of over $5,000 require an appraisal.

[kcjenkins]

Jack, while we know http://www.irs.gov/pub/irs-pdf/i8283.pdf  is not authoritative it is still reasonable to use it's guidance.  

Edited March 14, 2015 by jklcpa
fixed the link

[MsTabbyKats]

I lump....and everything is 12/31.

Except I have one client who has records of dates/amounts....and she wants it all broken down. If I write the wrong date...I have to fix it. It''s generally about 10 donations.

[michaelmars]

However, the regulation says TOTAL contribution(s) of over $5,000 require an appraisal.

I don't care about the irs which if questioned can get answered with a simple letter, I do this to get it to efile.

 

When you empty a house, you don't get an appraisal on every item, it would cost thousands.  Think of your house, and about getting an appraisal on every thing, every item of clothing, every record album [for you youngsters, google what those are] .  Its just not practical in my opinion. 

[RitaB]

But hopefully they took pictures...

And hopefully the pictures are not of seven black garbage bags.

Edited March 14, 2015 by RitaB

[jasdlm]

A client this year included photos from his dental exam (I guess).  8 photos of his teeth and the inside of his mouth from several different angles.  Fascinating. 

[RitaB]

A client this year included photos from his dental exam (I guess).  8 photos of his teeth and the inside of his mouth from several different angles.  Fascinating. 

Hahaha the emoticon says it all, there, jasdlm. And, crap, if I had known pictures of the inside of my mouth would substantiate dental expense, I coulda got past the 10% shave. Also, don't let me forget to run down to the landfill and take pictures of my donations for 2015.

Edited March 14, 2015 by RitaB

[Lion EA]

OK, so hubby is taking all my time talking about this, and I have a new S-corp with two states that I promised to deliver Sunday and need to get back to work.

 

The local chapter of American Guild of Organists, an organization that he suddenly ascended to Dean due to an officer moving and then took on just about everything else when another officer moved and a third appointed position-holder died, received boxes of music upon the death of yet another member (yeah, nobody's going into organ, so their membership is aging) from the decedent's daughter.  Apparently, the dead newsletter editor, never an officer, valued the gift about $2,000 and offered to write letters on AGO letterhead for $499 for four years running!  Or, the daughter bamboozled some letters; which as pushy as she's being, may be what happened in prior years.  Anyway, it appears the actual treasurer may have signed one letter with the now-dead newsletter editor signing letters in two more years.

 

Now the pushy daughter has been emailing dear hubby for days and days about getting her fourth letter.  Yes, it was one donation in 2011 of boxes of old music.  The Guild rounded up volunteers, vans, handcarts, and moved all those boxes out of daughter's house, really more as a kindness due to their deceased member.  They tried selling the music at one of their events, don't know what year.  Raised a few bucks from the sale and started a scholarship fund named after the deceased member.  They then had to get the boxes out of the church where they were storing them, so they gave away (one church had had a fire, so that organist lost all her files) and threw away all that old decomposing paper.

 

What does hubby write in response?  I had him do something short and sweet like we received no donation from you during 2014 so can acknowledge no donation for 2014.  But, she keeps writing him over and over again.  I found a short and sweet IRS memo with bullet points, but it's from the angle of the charity and can't find a corresponding one re donors.  The 8283 instructions very clearly state that you deduct it in the your you gave it, but I think the daughter is trying to avoid 8283 so probably doesn't care about it's instructions.  I find similar statements in thick publications, and maybe should overwhelm her with paper.  But, she just keeps saying but Jane Doe told me it was worth $2,000 and this is the fourth year that she promised me a letter.  I want my letter.  Yes, dear Miss Doe is the newsletter editor that died so isn't around to defend herself or tell us what really happened, and maybe Miss Doe did wrong but dear hubby isn't going to continue doing wrong.

 

Pushy daughter is not a member, so organization is not concerned with her feelings this many years after her mother died.  What would you write?  Or, would you ignore completely?

[Jack from Ohio]

OK, so hubby is taking all my time talking about this, and I have a new S-corp with two states that I promised to deliver Sunday and need to get back to work.

 

The local chapter of American Guild of Organists, an organization that he suddenly ascended to Dean due to an officer moving and then took on just about everything else when another officer moved and a third appointed position-holder died, received boxes of music upon the death of yet another member (yeah, nobody's going into organ, so their membership is aging) from the decedent's daughter.  Apparently, the dead newsletter editor, never an officer, valued the gift about $2,000 and offered to write letters on AGO letterhead for $499 for four years running!  Or, the daughter bamboozled some letters; which as pushy as she's being, may be what happened in prior years.  Anyway, it appears the actual treasurer may have signed one letter with the now-dead newsletter editor signing letters in two more years.

 

Now the pushy daughter has been emailing dear hubby for days and days about getting her fourth letter.  Yes, it was one donation in 2011 of boxes of old music.  The Guild rounded up volunteers, vans, handcarts, and moved all those boxes out of daughter's house, really more as a kindness due to their deceased member.  They tried selling the music at one of their events, don't know what year.  Raised a few bucks from the sale and started a scholarship fund named after the deceased member.  They then had to get the boxes out of the church where they were storing them, so they gave away (one church had had a fire, so that organist lost all her files) and threw away all that old decomposing paper.

 

What does hubby write in response?  I had him do something short and sweet like we received no donation from you during 2014 so can acknowledge no donation for 2014.  But, she keeps writing him over and over again.  I found a short and sweet IRS memo with bullet points, but it's from the angle of the charity and can't find a corresponding one re donors.  The 8283 instructions very clearly state that you deduct it in the your you gave it, but I think the daughter is trying to avoid 8283 so probably doesn't care about it's instructions.  I find similar statements in thick publications, and maybe should overwhelm her with paper.  But, she just keeps saying but Jane Doe told me it was worth $2,000 and this is the fourth year that she promised me a letter.  I want my letter.  Yes, dear Miss Doe is the newsletter editor that died so isn't around to defend herself or tell us what really happened, and maybe Miss Doe did wrong but dear hubby isn't going to continue doing wrong.

 

Pushy daughter is not a member, so organization is not concerned with her feelings this many years after her mother died.  What would you write?  Or, would you ignore completely?

Ignore. Problem solved.