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IRS Form 8282

  • 1.  IRS Form 8282

    Posted 12 days ago
    Hey Everyone,

    We are discussing our University's requirements with IRS Form 8282s and can't come to a consensus. I would love to hear the thoughts of the greater community. 

    We all agree we are required to file an 8282 for donated items that were disposed of/sold/etc over $5000.00.

    Are we required to file an 8282 for gifts in the $500-$4999.99 range?
    Do you have a policy of only filing an 8282 if an 8283 was signed by your organization? 

    Any thoughts, suggestions or best practices are appreciated!

    Thanks!
    -Chet


    ------------------------------
    Chet Kepler
    ckepler@pointloma.edu
    ------------------------------


  • 2.  RE: IRS Form 8282

    Posted 12 days ago
     The IRS says property valued at over $500 and not used/consumed in furtherance of your charitable purpose, and disposed of within 3 years needs an 8282 from the charity. 

    Filling out the 8283 is a duty on the donor, and it's also required only for gifts valued at over $500, except for C-corps, who only need to file for over $5k. Maybe that's the source of confusion?

    A policy to only file an 8282 if your donor did an 8283 is a policy that will lead to non-compliance with your IRS obligations, at the very least. You need to do an 8282 on disposal irrespective of the 8283. It's certainly with considering valuations you signed on to in the 8283 when doing the 8282 though. 





  • 3.  RE: IRS Form 8282

    Posted 12 days ago
    That is not correct.

    Donors must file and 8283 for items valued at $500+ (some restrictions apply).  However, nonprofit organizations are only asked to complete their portion of 8283s for items listed on Section B valued at $5,000+.

    There is NO requirement for nonprofit organizations to file an 8282 for items valued at less than $5,000.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 4.  RE: IRS Form 8282

    Posted 12 days ago

    To elaborate on what John has said, the instructions for Form 8282 begin:

     

    Purpose of Form Donee organizations use Form 8282 to report information to the IRS and donors about dispositions of certain charitable deduction property made within 3 years after the donor contributed the property.

     

    The form then includes the following definition:

     

    Charitable deduction property. Any donated property (other than money and publicly traded securities) if the claimed value exceeds $5,000 per item or group of similar items donated by the donor to one or more donee organizations. This is the property listed in Section B on Form 8283.

     

    So, as the definition says, the requirement to file Form 8282 only applies to property listed on Section B of the form, substantiating a deduction valued at more than $5,000.

     

    The exception to filing Form 8282 for items valued at $500 or less, then, applies to the case where the donee disposes of only part of the charitable deduction property.  This is supported by the fact that the exception uses language like "the appraised value of the specific item was not more than $500" and "those items that are clearly identified as having a value of $500 or less".

     

    Logically speaking, the donee would not typically know when a donor had filed Form 8283 Section A, since the donor files Section A with the IRS without any involvement of the charity.  So it wouldn't make sense for to require the donee to file Form 8282 every time it thought it might be possible that the donor might have filed Section A.  (This is probably a good time for a reminder that it is good practice for a charitable organization to restrict signing Section B of Form 8283 to a single person or restricted group, so that the organization can track the relevant property and would know to file Form 8282 if it disposes of such property.)

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

     






  • 5.  RE: IRS Form 8282

    Posted 12 days ago
    Thanks Alan, for explaining more fully. The value of the property now being sold - at the time it was donated - is what controls whether an 8282 needs to be filed. If you get a donation valued at over $5k and sell some portion of it valued at over $500, you do the 8282. 

    In any case, the filing of an 82 is required when its conditions are triggered, even if no 83 was filed by the donor, and so you don't want to tie your policies in a dependent fashion. Your obligation doesn't go away because someone else didn't file properly. 


    Thank you,
    Isaac Shalev
    CRM Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

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  • 6.  RE: IRS Form 8282

    Posted 12 days ago

    True, one might not know whether the donor actually did file Form 8283, but the donee does know that the donor could not have filed Form 8283 unless the donee completed the Donee Acknowledgment and returned it to the donor.  Therefore the best practice would be to keep track of the property for which your organization completes the Donee Acknowledgment on Section B of Form 8283 and file Form 8282 if you dispose of any such property within three years (unless the disposition falls under one of the exceptions).  Then you are assured that you file Form 8282 in all cases when it is required.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

     






  • 7.  RE: IRS Form 8282

    Posted 12 days ago
    The IRS does not require an 8282 for items valued at under $5,000.  Therefore you should not file one.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 8.  RE: IRS Form 8282

    Posted 12 days ago
    Does this still apply to vehicles donated if a 1098-c was filed after the sale of the vehicle?

    ------------------------------
    Chet Kepler
    ckepler@pointloma.edu
    ------------------------------



  • 9.  RE: IRS Form 8282

    Posted 12 days ago
    Edited by Alan Hejnal 12 days ago

    The instructions for IRS Form 8282 seem to indicate that the requirement to file the form does apply to property reported on Form 1098-C.  The instructions for the description of the property on Form 8282 mention such property explicitly (emphasis added):

     

    Column 1. For charitable deduction property that the organization sold, exchanged, or otherwise disposed of within 3 years of the original contribution, describe each item in detail. For a motor vehicle, include the vehicle identification number. For a boat, include the hull identification number. For an airplane, include the aircraft identification number. Additionally, for the period of time the organization owned the property, explain how it was used. If additional space is needed, attach a statement.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu                                                                                                                                            

     






  • 10.  RE: IRS Form 8282

    Posted 12 days ago
    Thank you all for your abundance of knowledge!

    ------------------------------
    Chet Kepler
    ckepler@pointloma.edu
    ------------------------------



  • 11.  RE: IRS Form 8282

    Posted 12 days ago
    I needed to ask the same question of a nonprofit law attorney who confirmed Alan's statements.  Upon further reflection, I realize that the 1099-c and 8283/2 serve different purposes.  The 1098-c essentially replaces the receipt sent to the donor.  The donor files the 8283 with their tax return.  We submit the 8282 only if the asset is sold (within three years), and requests more information than appears on the 1098-c.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 12.  RE: IRS Form 8282

    Posted 12 days ago

    Although in the case when a donee immediately turns around and sells the car at auction, it's all contemporaneous, so it can seem a bit redundant!

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu