Tax Experts
Deducting Noncash Donations Valued Over $5,000
By Kevin McCormally, Editorial Director, Kiplinger.com
March 17, 2008
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Q: I have donated hundreds of books to our local library. I have kept track of the number and type of books donated. Our library does not give receipts for donated books.
The total value of the books was $5030, using the "It's Deductible" calculator by Turbo Tax. Am I likely to be audited for claiming these donations when I don't have receipts? -- John M.
Kevin's Answer:
For noncash contributions valued at over $5,000, the law requires that you not only have a written receipt from the organization but also an appraisal of the value from a qualified appraiser. Qualified appraiser is defined as an individual, so I don't think a printout from the program would suffice.
See page 18 of IRS Publication 526 under "Noncash Donations" for details.
Claiming a donation worth over $5,000 is supposed to be accompanied on your return by a Form 8283 as discussed in IRS Publication 561.
It's hard to say what triggers an audit, but I suspect that if you note a $5,000 deduction on your Schedule A and do not include a Form 8283 that the IRS would contact you about the omission.
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