Tax Experts
Documenting Noncash Charitable Deductions
By Kevin McCormally, Editorial Director, Kiplinger.com
April 2008
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Q: I'm confused about the new ruling for "in kind" contributions. If I donate to Goodwill, do I have to itemize in excess of $500 for the total of all noncash contributions I've made to them for the year? Or do I itemize only if I've made one contribution for which I am claiming a value greater than $500? -- Ruth K.
Kevin's Answer
You need to provide special documentation if your gifts of property exceed $500 in total, not for each gift. Here's the rule from the IRS:
"Total deduction over $500. If your total deduction for all noncash contributions for the year is over $500, you must complete Section A of Form 8238, and attach it to your Form 1040. However, do not complete Section A for items you must report on Section B. See Deduction over $5,000 for one item, next, for the items you must report on Section B."
The Internal Revenue Service can disallow your deduction for noncash charitable contributions if it is more than $500, and you do not submit a required Form 8283 with your return.
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