Non cash contributions

When you make a non cash contribution to a charitable organization, you must determine the fair market value of your charitable contribution. When you give property to a charitable organization, you must determine the fair market value of your non cash contribution or donation.

Fair market value noncash charitable contributions

The fair market value noncash charitable contributions is the "price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of the relevant facts."

Noncash contributions of $5,000 or less

If you make a non cash charitable contribution of property to a charity, you should get a receipt from the organization. Starting in 1994, you need a receipt for contributions of $250 or more. The receipt should list the organization's name, the date and location of the donation, a description of the property, and the estimated value of the property.

For non cash property contributions of $500 or less, you simply report the amount of the charitable  contribution on your Schedule A. For noncash property contributions over $500, you must include IRS tax Form 8283 with your tax return.

When you are planning to make charitable contributions, make a list and take a picture of the items you are donating. You might also use your camcorder. This will help substantiate your charitable contribution and remind you to deduct the full value of the charitable contribution. It is especially important for large quantities and for items in good condition. Internal Revenue Service Publication 561 (IRS Publication 561) is helpful in determining the value of donated property. IRS Publication 561 is available free by calling 1-8OQ-TAX-FORM.

Noncash contributions of more than $5,000

If you donate non cash property worth more than $5,000 as a charitable contribution, you must still get the receipts and provide the information mentioned above of your charitable contributions.

For property other than publicly traded stock, you must also get a qualified appraisal of the property and attach an appraisal summary to your tax return. If you donate over $10,000 of non-publicly traded stock, you must get an appraisal of the stock.