Instructions for non-cash gifts over $250

Forum|Forum|1 year ago
April 2, 2025
1 reply
0 views

According to Schedule A, Form 1040, there are special instructions for non-cash gifts to charity over $250. What are those instructions? Does it apply to me if I donated more than $250 at once to goodwill, but of various items, none of which were more than $50.

Ask the Experts - MetLife VIII - April 2025

MonikaK1

The IRS requires proof of all cash donations big or small, such as a canceled check or a statement or receipt from the receiving organization.

If you make a donation of more than $250 in any one day to any one organization, your cancelled check is NOT enough.
You'll need an acknowledgment letter dated prior to your filing your tax return for the year in which you made the donation.

Non-cash donations, such as a vehicle, also need supporting records.

For individual non-cash gifts of $250 to $500, that proof must include written confirmation.
For a non-cash gift between $500 and $5,000, on top of written acknowledgment from the benefiting organization, you need to document your ownership and cost and file Form 8283.
Gifts of non-cash property valued at more than $5,000 require additional substantiation.

You must file one or more Forms 8283 if the amount of your deduction for each noncash contribution is more than $500. You must also file Form 8283 if you have a group of similar items for which a total deduction of over $500 is claimed.

Forms 8283 for between $500 and $5,000 can be mailed separately to the IRS while you can still e-file your return.

If you have a Form 8283 for over $5,000, you would need to print and mail your return and include an appraisal.

See this TurboTax tips article and the IRS Instructions for Form 8283 for more information.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

bryanpriorAuthor

Your bolded language is key here Monika. What is an "individual" non-cash gift? Sounds like this is up to interpretation? Or would a single drop off at Goodwill of say $270 comprised of items worth $50, $50, $50, $50, and $70 be considered an "individual" item?

SharonD007

IRS Topic no. 506 Charitable contributions states that "You must fill out one or more Forms 8283, Noncash Charitable Contributions and attach them to your return, if your deduction for each noncash contribution is more than $500."

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"