Appraisal for charitable contributions

When making charitable contributions of great values, sometimes an appraisal for charitable contributions is necessary to claim tax deduction for your charitable giving.

What kind of appraisal to get for charitable contributions?

If you need an appraisal for your charitable contributions, get an appraisal from an unrelated professional no earlier than 60 days before your charitable gift giving. You must receive the appraisal for charitable contributions by the due date of filing your tax return including extensions on which you claim the tax deductions from your charitable giving.

for property donations exceeding $5000, the donee organization must acknowledge the receipt of the property on Section B part IV of the IRS tax form 8283.

Bear in mind that if you make an overvaluation of your property which you donate to a charity, the IRS can disallow your tax deduction claims and can even impose tax penalties on your underpayment of taxes.

Appraisal fee for charitable contributions

A fee paid to an appraiser is not considered a charitable deduction but is considered deductible as a miscellaneous expense subject to the 2% adjusted gross income floor.