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              Publication 561
              (Rev. February 2024)                                             Contents
              Cat. No. 15109Q                                                  What’s New        . . . . . . . . . . . . . . . . . . 1
Department 
of the                                                                         Future Developments           . . . . . . . . . . . . 1
Treasury
Internal      Determining                                                      Introduction      . . . . . . . . . . . . . . . . . . 1
Revenue 
Service                                                                        What Is Fair Market Value (FMV)? . . . . . 2
              the Value of
                                                                               Valuation of Various Kinds of 
                                                                                   Property        . . . . . . . . . . . . . . . . . 4
              Donated
                                                                               Substantiation of Noncash 
                                                                                   Charitable Contributions            . . . . . . . 9
              Property
                                                                               Penalty     . . . . . . . . . . . . . . . . . . . .   12
                                                                               How To Get Tax Help . . . . . . . . . . . .           12
                                                                               Index       . . . . . . . . . . . . . . . . . . . . . 15

                                                                               What’s New
                                                                               New  actuarial  tables.         New  actuarial  tables 
                                                                               used to determine the present value of a chari-
                                                                               table interest donated to a charitable organiza-
                                                                               tion have been published. These new actuarial 
                                                                               tables were effective June 1, 2023. However, for 
                                                                               a period prior to June 1, 2023, there is a transi-
                                                                               tional  rule  allowing  filers  to  elect  to  use  either 
                                                                               the former or the new actuarial tables. The tran-
                                                                               sitional rule applies for donations with valuation 
                                                                               dates from May 1, 2019, through June 1, 2023. 
                                                                               See Actuarial tables, later.

                                                                               Future Developments
                                                                               For  the  latest  information  about  developments 
                                                                               related to Pub. 561, such as legislation enacted 
                                                                               after it was published, go to IRS.gov/Pub561.

                                                                               Introduction
                                                                               This publication is designed to help donors and 
                                                                               appraisers  determine  the  value  of  property 
                                                                               (other  than  cash)  that  is  given  to  qualified  or-
                                                                               ganizations. It also explains what kind of infor-
                                                                               mation you must have to support the charitable 
                                                                               contribution deduction you claim on your return.
                                                                               This publication does not discuss how to fig-
                                                                               ure the amount of your deduction for charitable 
                                                                               contributions or written records and substantia-
                                                                               tion required. See Pub. 526, Charitable Contri-
                                                                               butions, for this information.
                                                                               Comments  and  suggestions.               We  welcome 
                                                                               your comments about this publication and sug-
                                                                               gestions for future editions.
                                                                               You  can  send  us  comments  through 
                                                                               IRS.gov/FormComments.  Or,  you  can  write  to 
                                                                               the  Internal  Revenue  Service,  Tax  Forms  and 
                                                                               Publications,  1111  Constitution  Ave.  NW, 
                                                                               IR-6526, Washington, DC 20224.
              Get forms and other information faster and easier at:            Although  we  can’t  respond  individually  to 
              • IRS.gov (English)         • IRS.gov/Korean (한국어)               each comment received, we do appreciate your 
              • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)          feedback and will consider your comments and 
              • IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (Tiếng Việt)    suggestions as we revise our tax forms, instruc-
                                                                               tions,  and  publications.          Don’t  send  tax 

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questions, tax returns, or payments to the above Example 2. If you donate land and restrict Cost or Selling Price of the
address. its use to agricultural purposes, you must value Donated Property
the land at its value for agricultural purposes,
Getting answers to your tax questions. even if it would have a higher FMV if it were not The cost of the property to you or the actual
If you have a tax question not answered by this restricted. selling price received by the qualified organiza-
publication or the How To Get Tax Help section tion may be the best indication of its FMV. How-
at the end of this publication, go to the IRS In- Factors. In making and supporting the val- ever, because conditions in the market change,
teractive Tax Assistant page at IRS.gov/ uation of property, all factors affecting value are the cost or selling price of property may have
Help/ITA where you can find topics by using the relevant and must be considered. These in- less weight if the property was not bought or
search feature or viewing the categories listed. clude, but are not limited to: sold at a time that is reasonably close to the
• The cost or selling price of the item, date of contribution.
Getting tax forms, instructions, and pub • Sales of comparable properties,
lications. Go to IRS.gov/Forms to download • Replacement cost, and The cost or selling price is a good indication
current and prior-year forms, instructions, and • Opinions of professional appraisers. of the property's value if:
publications.
These factors are discussed later. Also, see • The purchase or sale took place close to
Ordering tax forms, instructions, and Table 1 for a summary of questions to ask as the valuation date in an open market,
publications. Go to IRS.gov/OrderForms to or- you consider each factor. • The purchase or sale was at “arm's-length,”
der current forms, instructions, and publica- • The buyer and seller knew all relevant
tions; call 800-829-3676 to order prior-year Date of contribution. Ordinarily, the date of a facts,
forms and instructions. The IRS will process contribution is the date on which the property is • The buyer and seller did not have to act,
your order for forms and publications as soon delivered to the charity or the title transfer date, and
as possible. Don’t resubmit requests you’ve al- provided you do not retain any right to or inter- • The market did not change between the
ready sent us. You can get forms and publica- est in the property that would limit the charity's date of purchase or sale and the valuation
tions faster online. use of the property. date.
Stock. If you deliver, without any condi- Example. Bailey Morgan, who is not a
Useful Items tions, a properly endorsed stock certificate to a dealer in gems, bought an assortment of gems
You may want to see: qualified organization or to an agent of the or- for $5,000 from a promoter. The promoter
ganization, the date of the contribution is the claimed that the price was “wholesale” even
Publication date of delivery. If the certificate is mailed and though this dealer and other dealers made simi-
526 526 Charitable Contributions received through the regular mail, it is the date lar sales at similar prices to other persons who
of mailing. If you deliver the certificate to a bank were not dealers. The promoter said that if Bai-
Forms (and Instructions) or broker acting as your agent or to the issuing ley kept the gems for more than 1 year and then
corporation or its agent, for transfer into the gave them to charity, Bailey could claim a chari-
8282 8282 Donee Information Return name of the organization, the date of the contri- table deduction of $15,000, which, according to
8283 8283 Noncash Charitable Contributions bution is the date the stock is transferred on the the promoter, would be the value of the gems at
8283-V 8283-V Payment Voucher for Filing Fee books of the corporation. the time of contribution. Bailey gave the gems to
Under Section 170(f)(13) Options. If you grant an option to a quali- a qualified charity 13 months after buying them.
See How To Get Tax Help near the end of this fied organization to buy real property, you have The selling price for these gems had not
publication for information about getting these not made a charitable contribution until the or- changed from the date of purchase to the date
publications and forms. ganization exercises the option. The amount of Bailey donated them to charity. The best evi-
the contribution is the FMV of the property on dence of FMV depends on actual transactions
the date the option is exercised minus the exer- and not on some artificial estimate. The $5,000
cise price. paid by Bailey and others is, therefore, the best
What Is Fair Market evidence of the maximum FMV of the gems.
Value (FMV)? Example. You grant an option to a local
university, which is a qualified organization, to Terms of the purchase or sale. The terms of
To figure how much you may deduct for prop- buy real property. Under the option, the univer- the purchase or sale should be considered in
erty that you contribute, you must first deter- sity could buy the property at any time during a determining FMV if they influenced the price.
mine its FMV on the date of the contribution. 2-year period for $40,000. The FMV of the prop- These terms include any restrictions, under-
This publication focuses the valuation of non- erty on the date the option is granted is standings, or covenants limiting the use or dis-
cash property being contributed after January $50,000. position of the property.
1, 2019, to a charity that qualifies under section In the following tax year, the university exer-
170(c) for an income tax charitable contribution cises the option. The FMV of the property on Rate of increase or decrease in value. Un-
deduction. the date the option is exercised is $55,000. less you can show that there were unusual cir-
Therefore, you have made a charitable contribu- cumstances, it is assumed that the increase or
FMV. FMV is the price that property would sell tion of $15,000 ($55,000, the FMV, minus decrease in the value of your donated property
for on the open market. It is the price that would $40,000, the exercise price) in the tax year the from your cost has been at a reasonable rate.
be agreed on between a willing buyer and a will- option is exercised. For time adjustments, an appraiser may con-
sider published price indexes for information on
ing seller, with neither being required to act, and general price trends, building costs, commodity
both having reasonable knowledge of the rele- Determining FMV costs, securities, and works of art sold at auc-
vant facts. In addition to this general rule, there tion in arm's-length sales.
are special rules used to value certain types of Determining the value of donated property de-
property such as remainder interests, annuities, pends upon many factors. You should consider Example. Corey Brown bought a painting
interests for life or for a term of years, and rever- all the facts and circumstances connected with for $10,000. Thirteen months later, Corey gave
sions, discussed below. the property, including any recent transactions, it to an art museum, claiming a charitable de-
in determining value. Value may also be based duction of $15,000 on their tax return. The ap-
Example 1. If you give an item of used on desirability, use, condition, scarcity, and mar- praisal of the painting should include informa-
clothing that is in good used condition or better ket demand for that property. Depending on the tion showing that there were unusual
to the Salvation Army, the FMV would be the type of property, there may be other characteris- circumstances that justify a 50% increase in
price that typical buyers actually pay for clothing tics that are relevant in determining its value. value for the 13 months Corey held the property.
of this age, condition, style, and use. Usually,
such items are worth far less than what you paid
for them.
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Table 1. Factors That Affect FMV an amount for depreciation due to the physical
condition and obsolescence of the donated
IF the factor you are property. You should be able to show the rela-
considering is... THEN you should ask these questions... tionship between the depreciated replacement
cost and the FMV, as well as how you arrived at
cost or selling price Was the purchase or sale of the property reasonably close to the date of contribution? the “estimated replacement cost new.”
Was any increase or decrease in value, as compared to your cost, at a reasonable
rate? Opinions of Professional
Do the terms of purchase or sale limit what can be done with the property? Appraisers
Was there an arm's-length offer to buy the property close to the valuation date?
Generally, the weight given to a professional ap-
sales of comparable How similar is the property sold to the property donated? praiser’s opinion on matters such as the authen-
properties How close is the date of sale to the valuation date? ticity of a coin or a work of art, or the most profit-
Was the sale at arm's-length? able and best use of a piece of real estate,
What was the condition of the market at the time of sale? depends on the knowledge and competence of
the professional appraiser and the thorough-
replacement cost What would it cost to replace the donated property? ness with which the opinion is supported by ex-
Is there a reasonable relationship between replacement cost and FMV? perience and facts. For a professional apprais-
Is the supply of the donated property more or less than the demand for it? er’s opinion to deserve much weight, the facts
must support the opinion. For additional infor-
opinions of professional Is the professional appraiser knowledgeable and competent? mation, see Appraisal, later.
appraisers Is the opinion thorough and supported by facts and experience?
Problems in Determining
Arm's-length offer. An arm's-length offer to The FMV of the books is $10,000, the price
buy the property close to the valuation date may at which similar quantities of books were being FMV
help to prove its value if the person making the sold to others at the time of the contribution.
offer was willing and able to complete the trans- There are a number of problems in determining
action. To rely on an offer, you should be able to Example 2. The facts are the same as in the FMV of donated property.
show proof of the offer and the specific amount Example 1, except that the promoter gave
to be paid. Offers to buy property other than the Quinn Black a second option. The promoter Unusual Market Conditions
donated item will help to determine value if the said that if Quinn wanted a charitable deduction
other property is reasonably similar to the dona- within 1 year of the purchase, Quinn could buy The sale price of the property itself in an
ted property. the 500 books at the “retail” price of $30,000, arm's-length transaction in an open market is
paying only $10,000 in cash and giving a prom- often the best evidence of its value. When you
Sales of Comparable Properties issory note for the remaining $20,000. The prin- rely on sales of comparable property, the sales
cipal and interest on the note would not be due must have been made in an open market. If
The sales prices of properties similar to the do- for 12 years. According to the promoter, Quinn those sales were made in a market that was ar-
nated property are often important in determin- could then, within 1 year of the purchase, give tificially supported or stimulated so as not to be
ing the FMV. The weight to be given to each the books to a qualified organization and claim truly representative, the prices at which the
sale depends on the following. the full $30,000 retail price as a charitable con- sales were made will not indicate the FMV.
• The degree of similarity between the prop- tribution. Quinn purchased the books under the
erty sold and the donated property. second option and, 3 months later, gave them For example, liquidation sale prices usually
• The time of the sale—whether it was close to a house of worship, which will use the books do not indicate the FMV. Also, sales of stock un-
to the valuation date. for religious purposes. der unusual circumstances, such as sales of
• The circumstances of the sale—whether it At the time of the gift, the promoter was sell- small lots, forced sales, and sales in a restricted
was at arm's-length with a knowledgeable ing similar lots of books for either $10,000 or market, may not represent the FMV.
buyer and seller, with neither having to act. $30,000. The difference between the two prices
• The conditions of the market in which the was solely at the discretion of the buyer. The Selection of Comparable Sales
sale was made—whether unusually infla- promoter was a willing seller for $10,000.
ted or deflated. Therefore, the value of Quinn’s contribution of Using sales of comparable property is an impor-
the books is $10,000, the amount at which simi- tant method for determining the FMV of dona-
The comparable sales method of valuing real lar lots of books could be purchased from the ted property. However, the amount of weight
estate is explained later under Valuation of Vari- promoter by members of the general public. given to a sale depends on the degree of simi-
ous Kinds of Property. larity between the comparable and the donated
Example 1. Quinn Black, who is not a book Replacement Cost properties. The degree of similarity must be
close enough so that this selling price would
dealer, paid a promoter $10,000 for 500 copies have been given consideration by reasonably
of a single edition of a modern translation of a The cost of buying, building, or manufacturing
religious book. The promoter had claimed that property similar to the donated item may be well-informed buyers or sellers of the property.
the price was considerably less than the “retail” considered in determining FMV. However, there Example. You give a rare, old book to your
price and gave Quinn a statement that the must be a reasonable relationship between the former college. The book is a third edition and is
books had a total retail value of $30,000. The replacement cost and the FMV. in poor condition because of a missing back
promoter advised that if Quinn kept the books cover. You discover that there was a sale for
for more than 1 year and then gave them to a The replacement cost is the amount it would $300, near the valuation date, of a first edition of
qualified organization, Quinn could claim a cost to replace the donated item on the valua- the book that was in good condition. Although
charitable deduction for the “retail” price of tion date. Often, there is no relationship be- the contents are the same, the books are not at
$30,000. Thirteen months later, all the books tween the replacement cost and the FMV. If the all similar because of the different editions and
were given to a house of worship from a list pro- supply of the donated property is more or less their physical condition. Little consideration
vided by the promoter. At the time of the dona- than the demand for it, the replacement cost be- would be given to the selling price of the $300
tion, wholesale dealers were selling similar comes less important. property by knowledgeable buyers or sellers.
quantities of books to the general public for
$10,000. To determine the replacement cost of the
donated property, find the “estimated replace-
ment cost new.” Then subtract from this figure
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Future Events that is not in good used condition or better for Internal Revenue Service/Appeals
which you claim an income tax charitable contri- Attn: Art Appraisal Services
You may not consider unexpected events hap- bution deduction of more than $500. In this Request for Statement of Value
pening after your donation of property in making case, you must obtain a qualified appraisal valu- 1111 Constitution Ave. NW, Room 3615
the valuation. You may consider only the facts ing the item and complete a Form 8283. See Washington, DC 20224–0002
known at the time of the gift, and those that Deduction over $500 for certain clothing or
could reasonably be expected at the time of the household items, later. Refunds. You can withdraw your request
gift. for a Statement of Value at any time before it is
If the property is valuable because it is old or issued. However, the IRS will not refund the
Example. You give farmland to a qualified unique, see Art and Collectibles, later. user fee if you do.
charity. The transfer provides that your mother If the IRS declines to issue a Statement of
will have the right to all income and full use of Value in the interest of efficient tax administra-
the property for her life. Even though your Used Clothing
tion, the IRS will refund the user fee.
mother dies 1 week after the transfer, the value
of the property on the date it is given is its Used clothing and other personal items are usu- Art. Because many kinds of art may be the
present value, subject to the life interest as esti- ally worth far less than the price you paid for subject of a charitable donation, it is not possi-
mated from actuarial tables. You may not take a them. Valuation of items of clothing does not ble to discuss all of the possible types in this
higher deduction because the charity received lend itself to fixed formulas or methods. publication. Most common are paintings, sculp-
full use and possession of the land only 1 week tures, watercolors, prints, drawings, ceramics,
after the transfer. The price that buyers of used items actually
pay in used clothing stores, such as consign- antiques, decorative arts, textiles, carpets, sil-
ment or thrift shops, is an indication of the ver, rare manuscripts, and historical memora-
Using Past Events To Predict the value. bilia.
Future Authenticity. The professional appraiser
You cannot take an income tax charitable should use reasonable due diligence to deter-
A common error is to rely too much on past contribution deduction for an item of clothing mine or confirm the authenticity of a donated art
events that do not fairly reflect the probable fu- unless it is in good used condition or better. An work. This due diligence may include verifying
ture earnings and FMV. item of clothing that is not in good used condi- whether the art work is included in the relevant
tion or better for which you claim an income tax catalogue raisonné (a scholarly listing of all
Example. You give all your rights in a suc- charitable contribution deduction of more than known works by a specific artist), has an as-
cessful patent to your favorite charity. Your re- $500 requires a qualified appraisal and a com- signed foundation number when relevant, is in-
cords show that before the valuation date there pleted Form 8283. See Deduction over $500 for cluded in a comprehensive on-line archive, or
were three stages in the patent's history of certain clothing or household items, later. whether the art work has an accompanying cer-
earnings. First, there was rapid growth in earn-
ings when the invention was introduced. Then, tificate of authenticity from a recognized author-
there was a period of high earnings when the in- Art and Collectibles ity or expert on the artist.
vention was being exploited. Finally, there was a Physical condition. The physical condi-
decline in earnings when competing inventions Your income tax charitable contribution dona- tion and extent of restoration are both relevant
were introduced. The entire history of earnings tion of art and collectibles, for which you claim a in determining the valuation of art and antiques.
may be relevant in estimating the future earn- deduction of more than $5,000 must be suppor- These factors should be addressed in the ap-
ings. However, the appraiser must not rely too ted by a qualified appraisal and a Form 8283. praisal. An antique in damaged condition lack-
much on the stage of rapid growth in earnings See Qualified Appraisal, later. ing the "original brasses," may be worth much
or of high earnings. The market conditions at less than a similar piece in excellent condition.
those times do not represent the condition of Art valued at $20,000 or more. If you claim a
the market at the valuation date. What is most deduction of $20,000 or more for an income tax Collectibles. Because many kinds of collecti-
significant is the trend of decline in earnings up charitable contribution donation of art, you must bles may be the subject of a charitable dona-
to the valuation date. For more information attach the qualified appraisal for the art. A pho- tion, it is not possible to discuss all of the possi-
about donations of patents, see Patents, later. tograph of a size and quality fully showing the ble types in this publication. Most common are
object, preferably a high-resolution digital im- rare books, autographs, sports memorabilia,
age, must be provided if requested. dolls, manuscripts, stamps, coins, guns, gems,
Valuation of Various jewelry, music and entertainment memorabilia,
Art valued at $50,000 or more. If you donate comics, toys, and natural history items.
Kinds of Property an item of art that has been appraised at
$50,000 or more, you can request a Statement Reference material. Publications availa-
This section contains information on determin- of Value for that item from the IRS. You must re- ble to help you determine the value of many
ing the FMV of ordinary kinds of donated prop- quest the statement before filing the tax return kinds of collections include catalogs, dealers'
erty. For information on appraisals, see Ap- that reports the donation. Your request must in- price lists, and specialized hobby periodicals.
praisal, later. clude the following. When using one of these price guides, you
• A copy of a qualified appraisal of the item. must use the current edition at the date of con-
Household Items See Qualified Appraisal, later. tribution.
• A user fee of $7,500 for one to three items These sources are not always reliable
The FMV of used household items is usually and $400 for each additional item paid ! indicators of FMV and should be sup-
much lower than the price paid when new. through Pay.gov. A payment confirmation CAUTION ported by other evidence.
Household items include furniture, furnishings, will be provided to you through the Pay.gov
electronics, appliances, linens, and similar portal and you should submit the payment For example, a dealer may sell an item for
items. Household items do not include paint- confirmation with your Statement of Value much less than is shown on a price list, particu-
ings, antiques, objects of art, jewelry, gems, and request. larly after the item has remained unsold for a
collections like stamp and coin collections. • A completed Form 8283, Section B. long time. The price an item sold for in an auc-
Such used property may have little or no market • The location of the IRS territory that has tion may have been the result of a rigged sale or
value because it may be out of style. examination responsibility for your return. a mere bidding duel. The appraiser must ana-
lyze the reference material, and recognize and
If your request lacks essential information, you make adjustments for misleading entries. If you
You cannot take an income tax charitable will be notified and given 30 days to provide the are claiming an income tax charitable contribu-
contribution deduction for household items un- missing information. tion deduction for the donation of a collection
less they are in good used condition or better. Send your request to:
The one exception to this is a household item
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valued at more than $5,000, you must obtain a Manuscripts, autographs, diaries, and More information. Your deduction for a dona-
qualified appraisal and complete a Form 8283. similar items. When these items are hand- ted car, boat, or airplane is generally limited to
written, or at least signed by famous people, the gross proceeds from its sale by the qualified
Gems and jewelry. Gems and jewelry are they are often in demand and are valuable. organization. This rule applies if the claimed
of such a specialized nature that it is almost al- However, the noteworthiness of an author is not value of the donated vehicle is more than $500.
ways necessary to get an appraisal by a speci- the only determining factor; the writings of un- In certain cases, you can deduct the vehicle's
alized jewelry appraiser. The appraisal should known or obscure authors may also be of value FMV. For details, see Pub. 526.
describe, among other things, the style of the if they are of unusual historical or literary impor-
jewelry, the cut and setting of the gem, and tance. Determining the value of such material is
whether it is now in fashion. The stone's color- difficult. For example, there may be a great dif- Inventory
ing, weight, cut, brilliance, and flaws should be ference in value between two diaries that were If you donate any inventory item to a charitable
reported and analyzed. Sentimental personal kept by a famous person—one kept during organization, the amount of your deductible
value has no effect on FMV. But if the jewelry childhood and the other during a later period in contribution is generally the FMV of the item,
was owned by a famous person, its value might their life. The appraiser determines a value in minus any gain you would have realized if you
increase. GIA certificates and color photos these cases by applying knowledge and judg- had sold the item at its FMV on the date of the
should be included in jewelry appraisals. ment to such factors as comparable sales and gift. For more information, see Pub. 526.
Stamp collections. Most libraries have market conditions.
catalogs or other books that report the publish-
er's estimate of values. Generally, two price lev- Cars, Boats, and Aircraft Patents
els are shown for each stamp: the price post-
To determine the FMV of a patent, you must
marked and the price not postmarked. Contact If you donate a car, a boat, or an aircraft to a take into account, among other factors:
an appraiser for assistance with properly valu- charitable organization, its FMV must be deter- • Whether the patented technology has
ing stamp collections. mined. been made obsolete by other technology;
Coin collections. Many catalogs and other • Any restrictions on the donee's use of, or
reference materials show the writer's or publish- Certain commercial firms and trade organi- ability to transfer, the patented technology;
er's opinion of the value of coins on or near the zations publish monthly or seasonal guides for and
date of the publication. Like many other collec- different regions of the country, containing com- • The length of time remaining before the
tors' items, the value of a coin depends on the plete dealer sale prices or dealer average pri- patent expires.
demand for it, its age, and its rarity. Another im- ces for recent model years. Prices are reported
portant factor is the coin's condition. For exam- for each make, model, and year. These guides However, your deduction for a donation of a
ple, there is a great difference in the value of a also provide estimates for adjusting for unusual patent or other intellectual property is its FMV,
coin that is in mint condition and a similar coin equipment, unusual mileage, and physical con- minus any gain you would have realized if you
that is only in good condition. dition. The prices are not “official,” and these had sold the property at its FMV on the date of
Use caution when consulting price guides publications are not considered an appraisal of the gift. Generally, this means your deduction is
for coins as only a trained grader can distin- any specific donated property. But they do pro- the lesser of the property's FMV or its basis. For
guish the difference between various Mint State vide clues for making an appraisal and suggest details, see Pub. 526.
grades and circulated grades including ex- relative prices for comparison with current sales
tremely fine, very fine, fine, very good, good, and offerings in your area.
Stocks and Bonds
fair, or poor. The difference in value between
one grade and another could be vast. These publications are sometimes available
from public libraries or at a bank, credit union, The value of stocks and bonds is the FMV of a
Books. The value of books is usually deter- or finance company. You can also find pricing share or bond on the valuation date. See Date
mined by selecting comparable sales and ad- information about used cars on the Internet. of contribution, earlier, under What Is Fair Mar-
justing the prices according to the differences ket Value (FMV)?
between the comparable sales and the item be- An acceptable measure of the FMV of a do-
ing evaluated. This can be difficult to do and, nated car, boat, or airplane is an amount not in Selling prices on valuation date. If there is
except for a collection of little value, should be excess of the price listed in a used vehicle pric- an active public market for the contributed
done by a specialized appraiser. ing guide for a private party sale, not the dealer stocks or bonds on a stock exchange, in an
retail value, of a similar vehicle. However, the over-the-counter market, or elsewhere, the FMV
Modest value of collection. If the collec- FMV may be less than that amount if the vehicle of each share or bond is the average price be-
tion you are donating is of modest value, not re- has engine trouble, body damage, high mile- tween the highest and lowest quoted selling pri-
quiring a written appraisal, the following infor- age, or any type of excessive wear. The FMV of ces on the valuation date. For example, if the
mation may help you in determining the FMV. a donated vehicle is the same as the price listed highest selling price for a share was $11 and
A book that is very old, or very rare, is not in a used vehicle pricing guide for a private the lowest $9, the average price is $10. You get
necessarily valuable. There are many books party sale only if the guide lists a sales price for the average price by adding $11 and $9 and di-
that are very old or rare, but that have little or no a vehicle that is the same make, model, and viding the sum by 2.
market value. year, sold in the same area, in the same condi- No sales on valuation date. If there were
Condition of book. The condition of a tion, with the same or similar options or acces- no sales on the valuation date, but there were
book may have a great influence on its value. sories, and with the same or similar warranties sales within a reasonable period before and af-
Collectors are interested in items that are in as the donated vehicle. ter the valuation date, you determine FMV by
fine, or at least good, condition. When a book taking the average price between the highest
has a missing page, a loose binding, tears, or Example. You donate a used car in poor and lowest sales prices on the nearest date be-
stains, or is otherwise in poor condition, its condition to a local high school for use by stu- fore and on the nearest date after the valuation
value is greatly lowered. dents studying car repair. A used car guide date. Then you weight these averages in in-
shows the dealer retail value for this type of car verse order by the respective number of trading
Other factors. Some other factors in the in poor condition is $1,600. However, the guide days between the selling dates and the valua-
valuation of a book are the kind of binding shows the price for a private party sale of the tion date.
(leather, cloth, paper), page edges, and illustra- car is only $750. The FMV of the car is consid-
tions (drawings and photographs). Collectors ered to be no more than $750. Example. On the day you gave stock to a
usually want first editions of books. However, qualified organization, there were no sales of
because of changes or additions, other editions Boats. Except for inexpensive small boats, the the stock. Sales of the stock nearest the valua-
are sometimes worth as much as, or more than, valuation of boats should be based on an ap- tion date took place 2 trading days before the
the first edition. praisal by a marine surveyor because the physi- valuation date at an average selling price of $10
cal condition is so critical to the value. and 3 trading days after the valuation date at an
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average selling price of $15. The FMV on the Unavailable prices. If selling prices (or bid For each comparable sale, the appraisal
valuation date was $12, figured as follows. and asked prices) are not available, you should must include the names of the buyer and seller,
work with a professional appraiser to determine the deed book and page number, the date of
[(3 x $10) + (2 x $15)] ÷ 5 = $12 the FMV of the bond or stock on the valuation sale and selling price, a property description,
date because the analysis requires considera- the amount and terms of mortgages, property
Listings on more than one stock ex tion of factors similar to those used to value an surveys, the assessed value, the tax rate, and
change. Stocks or bonds listed on more than Interest in a Business below. the assessor's appraised FMV.
one stock exchange are valued based on the
prices of the exchange on which they are princi- Restricted securities. Some classes of stock The comparable selling prices must be ad-
pally dealt. This applies if these prices are pub- cannot be traded publicly because of restric- justed to account for differences between the
lished in a generally available listing or publica- tions imposed by the Securities and Exchange sale property and the donated property. Be-
tion of general circulation. If this is not Commission, or by the corporate charter or a cause differences of opinion may arise between
applicable, and the stocks or bonds are repor- trust agreement. These restricted securities appraisers as to the degree of comparability
ted on a composite listing of combined ex- usually trade at a discount in relation to freely and the amount of the adjustment considered
changes in a publication of general circulation, traded securities. necessary for comparison purposes, an ap-
use the composite list. See also Unavailable pri- You should work with a professional be- praiser should document each item of adjust-
ces, later. cause the analysis requires consideration of ment.
factors similar to those used to value an Interest
Bid and asked prices on valuation date. If in a Business, below. Only comparable sales having the least ad-
there were no sales within a reasonable period justments in terms of items and/or total dollar
before and after the valuation date, the FMV is adjustments should be considered as compara-
the average price between the bona fide bid Real Estate ble to the donated property.
and asked prices on the valuation date.
Because each piece of real estate is unique and
Example. Although there were no sales of its valuation is complicated, a detailed appraisal 2. Capitalization of Income
Blue Corporation stock on the valuation date, by a professional appraiser is necessary. This method capitalizes the net income from the
bona fide bid and asked prices were available property at a rate that represents a fair return on
on that date of $14 and $16, respectively. The The appraiser must be thoroughly trained in
FMV is $15, the average price between the bid the application of appraisal principles and the particular investment at the particular time,
and asked prices. theory. In some instances, the opinions of considering the risks involved. The key ele-
equally qualified appraisers may carry unequal ments are the determination of the income to be
No prices on valuation date. If there weight, such as when one appraiser has a bet- capitalized and the rate of capitalization.
were no prices available on the valuation date, ter knowledge of local conditions.
you determine FMV by taking the average pri- 3. Replacement Cost New or
ces between the bona fide bid and asked prices The appraisal report must contain a com- Reproduction Cost Minus
on the closest trading date before and after the plete description of the property, such as street Observed Depreciation
valuation date. Both dates must be within a rea- address, legal description, and lot and block
sonable period. Then you weight these aver- number, as well as physical features, condition, This method, used alone, usually does not re-
ages in inverse order by the respective number and dimensions. The use to which the property sult in a determination of FMV. Instead, it gener-
of trading days between the bid and asked is put, zoning and permitted uses, and its poten- ally tends to set the upper limit of value, particu-
dates and the valuation date. tial use for other higher and better uses are also larly in periods of rising costs, because it is
relevant. reasonable to assume that an informed buyer
Example. On the day you gave stock to a will not pay more for the real estate than it would
qualified organization, no prices were available. In general, there are three main approaches
Bona fide bid and asked prices 3 days before to the valuation of real estate. An appraisal may cost to reproduce a similar property. Of course,
the valuation date were $10 and 2 days after the require the combined use of two or three meth- this reasoning does not apply if a similar prop-
valuation date were $15. The FMV on the valua- ods rather than one method only. erty cannot be created because of location, un-
usual construction, or some other reason. Gen-
tion date is $13, figured as follows. erally, this method serves to support the value
1. Comparable Sales determined from other methods. When the re-
[(2 x $10) + (3 x $15)] ÷ 5 = $13 placement cost method is applied to improved
The comparable sales method compares the realty, the land and improvements are valued
Prices only before or after valuation date, donated property with several similar properties separately.
but not both. If no selling prices or bona fide that have been sold. The selling prices, after ad-
bid and asked prices are available on a date justments for differences in date of sale, size, The replacement cost of a building is figured
within a reasonable period before the valuation condition, and location, would then indicate the by considering the materials, the quality of
date, but are available on a date within a rea- estimated FMV of the donated property. workmanship, and the number of square feet or
sonable period after the valuation date, or vice cubic feet in the building. This cost represents
versa, then the average price between the high- If the comparable sales method is used to the total cost of labor and material, overhead,
est and lowest of such available prices may be determine the value of unimproved real property and profit. After the replacement cost has been
treated as the value. (land without significant buildings, structures, or figured, consideration must be given to the fol-
any other improvements that add to its value), lowing factors.
Large blocks of stock. When a large block of the appraiser should consider the following fac- • Physical deterioration—the wear and tear
stock is put on the market, it may lower the sell- tors when comparing the potential comparable on the building itself.
ing price of the stock if the supply is greater property and the donated property. • Functional obsolescence—usually in older
than the demand. On the other hand, market • Location, size, and zoning or use restric- buildings with, for example, inadequate
forces may exist that will afford higher prices for tions. lighting, plumbing, or heating; small rooms;
large blocks of stock. Because of the many fac- • Accessibility and road frontage, and availa- or a poor floor plan.
tors to be considered, determining the value of ble utilities and water rights. • Economic obsolescence—outside forces
large blocks of stock usually requires the help of • Riparian rights (right of access to and use causing the whole area to become less de-
experts specializing in underwriting large quan- of the water by owners of land on the bank sirable.
tities of securities or in trading in the securities of a river) and existing easements,
of the industry of which the particular company rights-of-way, leases, etc.
is a part. • Soil characteristics, vegetative cover, and
status of mineral rights.
• Other factors affecting value.
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Interest in a Business 1458, Actuarial Valuations, Version 4B; and the amount that company would charge for a
Pub. 1459, Actuarial Valuations, Version 4C. comparable contract.
The FMV of any interest in a closely held busi- These publications provide examples showing
ness (whether a sole proprietorship or a busi- the use of actuarial factors and contain links to But if the donee of a life insurance policy
ness taxed as a corporation or partnership) is the tables of factors to be used in determining may reasonably be expected to cash the policy
the amount that a willing buyer would pay for the the present value of an annuity, an interest for rather than hold it as an investment, then the
interest to a willing seller after consideration of life or a term of years, or a remainder or rever- FMV is the cash surrender value rather than the
all relevant factors. Because of the many factors sionary interest. replacement cost.
to be considered in determining the FMV of an Pub. 1457 explains the use of actuarial fac- If an annuity is payable under a combination
interest in a closely held business, the help of tors for computing the present value of a re- annuity contract and life insurance policy (for
experts is usually required. Such a determina- mainder interest in a charitable remainder annu- example, a retirement income policy with a
tion requires the consideration of all available fi- ity trust and a pooled income fund, as well as death benefit) and there was no insurance ele-
nancial data, as well as all relevant factors af- factors for annuities, life estates, term certain ment when it was transferred to the charity, the
fecting FMV. The following factors, although not estates, and other remainder interests. Pub. policy is treated as an annuity contract.
all-inclusive, may be helpful. 1458 explains the use of the factors for valuing
• The business's net worth and prospective the remainder interest in a charitable remainder
earning power. unitrust. Pub. 1459 explains the use of factors to Partial Interest in Property
• The nature and history of the business. determine the present value of a remainder in- Not in Trust
• The economic outlook of the industry in terest in depreciable property. You can down-
which the business operates. load Pubs. 1457, 1458, and 1459 from https:// Generally, no deduction is allowed for a charita-
• The business's position in the industry, its www.irs.gov/retirement-plans/actuarial-tables. ble contribution, not made in trust, of less than
competitors, and its management. Formulas for actuarial factors for transfers to your entire interest in property. However, this
• The FMV of assets of the business includ- pooled income funds may also be found in Reg- does not apply to a transfer of less than your
ing goodwill, if applicable. ulations section 1.642(c)-6(e)(6), factors for entire interest if it is a transfer of:
• The value of interests in businesses en- transfers to charitable remainder unitrusts in • A remainder interest in your personal resi-
gaged in the same or similar industries. Regulations section 1.664-4(e), and factors for dence or farm,
other transfers in Regulations section • An undivided part of your entire interest in
You should keep complete financial and 20.2031-7(d)(6). property, or
other information on which the valuation is • A qualified conservation contribution.
based. This includes copies of reports of exami- Note. The tables referenced by Versions
nations of the business made by accountants, 4A, 4B, and 4C of the publications are effective Remainder Interest in Real
engineers, or any technical experts on or close for transfers on or after June 1, 2023. These ta- Property
to the valuation date. bles use a more recent mortality basis than ear-
lier tables. The earlier versions of the publica- The amount of the deduction for a donation of a
Annuities, Interests for Life tions, Versions 3A, 3B, and 3C, are also remainder interest in real property is the FMV of
available: these versions—and the actuarial ta- the remainder interest at the time of the contri-
or Terms of Years, bles they reference—are applicable for transfers bution, determined as the present value of that
Remainders, and Reversions after April 30, 2009, and before June 1, 2023. remainder interest. To determine the present
However, there is a transition rule under which value of the remainder interest, you must know
The FMV of these kinds of property is their you may elect to use the later tables (those ref- the FMV of the property as a whole (from which
present value, except in the case of annuities erenced in Versions 4A, 4B, and 4C) for valuing the remainder interest is donated) on the date
under contracts issued by companies regularly interests transferred from May 1, 2019, through of the contribution. Multiply the FMV of the
engaged in their sale. The valuation of these June 1, 2023. However, you must be consistent whole property by the appropriate remainder
commercial annuity contracts and of insurance in using factors derived under the same mortal- factor. Examples in Pubs. 1457, 1458 and 1459
policies is discussed later under Certain Life In- ity basis with respect to each interest (income, show how to use these factors and contain links
surance and Annuity Contracts. remainder, annuity, etc.) in the same property, to these tables.
To determine present value, you must know and with respect to all transfers occurring on
the applicable interest rate and use actuarial ta- that valuation date. All of these publications and If the underlying property of which the re-
bles. tables can be accessed from https:// mainder interest being donated is depreciable
www.irs.gov/retirement-plans/actuarial-tables. property, you must make an adjustment for de-
Interest rate. The applicable interest rate var- preciation or depletion using the factors in Table
ies. It is announced monthly in a news release Special factors. If you need a special factor C, as referenced by and explained in Pub. 1459,
and published in the Internal Revenue Bulletin for an actual transaction, you can request a let- Actuarial Valuations, Version 4C. See Annuities,
as a Revenue Ruling. The interest rate to use is ter ruling. Be sure to include the date of birth of Interests for Life or Terms of Years, Remainders,
under the heading “Rate Under Section 7520” each person the duration of whose life may af- and Reversions, earlier. You can download Pub.
for a given month and year. For a transfer involv- fect the value of the interest. Also include cop- 1459 from https://www.irs.gov/retirement-plans/
ing a charitable interest, you may elect to use ies of the relevant instruments. The IRS charges actuarial-tables.
the interest rate for the month of the donation or a user fee for providing special factors.
the interest rate for either of the 2 preceding For more information about requesting a rul- For this purpose, the term “depreciable
months. You must use the same interest rate to ing, see Revenue Procedure 2024-1 (or annual property” means any property subject to wear
determine the present value of all interests in update). and tear or obsolescence, even if not used in a
that property. You must attach a statement to For information on the circumstances under trade or business or for the production of in-
the return to take the election. You can call the which a charitable deduction may be allowed for come.
IRS office at 800-829-1040 to obtain this rate. the donation of a partial interest in property not
in trust, see Partial Interest in Property Not in If the remainder interest is an interest in real
Actuarial tables. You need to refer to actua- Trust, later. property that includes both depreciable and
rial tables to determine the present value of a nondepreciable elements, for example, a house
charitable interest in the form of an annuity, any Certain Life Insurance and and land, the FMV of the underlying real prop-
interest for life or a term of years, or remainder erty must be allocated between each kind of
interest donated to a charitable organization. Annuity Contracts property at the time of the contribution. You
Use the actuarial tables set forth by regula- must use distinct actuarial factors that apply
tion for these types of interests. These tables The value of an annuity contract or a life insur- separately to the depreciable portion and to the
are referenced by and explained in IRS Pub. ance policy issued by a company regularly en- nondepreciable portion, in order to determine
1457, Actuarial Valuations, Version 4A; Pub. gaged in the sale of such contracts or policies is the present value of the entire remainder
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interest. The example provided in Pub. 1459 ex- Conservation purposes. Your contribution a. Is a qualified organization with a pur-
plains how to get both kinds of remainder fac- must be made only for one of the following con- pose of environmental protection,
tors and apply them separately to the two ele- servation purposes. land conservation, open space pres-
ments of the underlying property value. The • Preserving land areas for outdoor recrea- ervation, or historic preservation; and
sum of the present value of the remainder inter- tion by, or for the education of, the general b. Has the resources to manage and en-
est in the nondepreciable element of the under- public. force the restriction and a commit-
lying property, plus the present value of the re- • Protecting a relatively natural habitat of ment to do so.
mainder interest in the depreciable element of fish, wildlife, or plants, or a similar ecosys-
the underlying property, is the present value of tem. 3. You must include with your return:
the entire remainder interest in the property. • Preserving open space, including farmland a. Form 8283, completed as specified in
and forest land, if it yields a significant pub-
For more information, see Regulations sec- lic benefit. It must be either for the scenic the instructions to Form 8283;
tion 1.170A-12. enjoyment of the general public or under a b. A signed qualified appraisal, per-
clearly defined federal, state, or local gov- formed by a qualified appraiser;
ernmental conservation policy.
Undivided Part of Your Entire • Preserving a historically important land c. Photographs of the building's entire
Interest area or a certified historic structure. There exterior;
must be some visual public access to the d. A description of all restrictions on de-
A contribution of an undivided part of your entire property. Factors used in determining the velopment of the building, such as
interest in property must consist of a part of type and amount of public access required zoning laws and restrictive covenants;
each and every substantial interest or right you include the historical significance of the and
own in the property. It must extend over the en- property, the remoteness or accessibility of
tire term of your interest in the property. For ex- the site, and the extent to which intrusions e. The National Park Service project
ample, you are entitled to the income from cer- on the privacy of individuals living on the number (NPS #), if applicable. See
tain property for your life (life estate) and you property would be unreasonable. the Form 8283 instructions for more
contribute 20% of that life estate to a qualified information.
organization. You can claim a deduction for the Certified historic structures. A certified his- If you claim a deduction of more than
contribution if you do not have any other interest toric structure is a building that is listed individu- $10,000 for an easement or other restriction on
in the property. ally in the National Register of Historic Places the exterior of a historically significant building,
(National Register building), or a building that is your deduction will not be allowed unless you
If the only interest you own in real property is located in a registered historic district and has pay a $500 filing fee. See Form 8283-V and its
a remainder interest in a personal residence or been certified by the Secretary of the Interior as instructions.
farm and you give your entire remainder interest contributing to the historic significance of that If you claimed the rehabilitation credit for a
to a qualifying charity under section 170(c), see district (historically significant building). If the in- National Register or historically significant build-
Annuities, Interests for Life or Terms of Years, dividual listing in the National Register of His- ing for any of the 5 years before the year of the
Remainders, and Reversions above, for infor- toric Places consists of a more than one build- qualified conservation contribution, your chari-
mation on how to value that remainder interest. ing (for example, a house, a garage, a mill table deduction is reduced. For more informa-
complex, etc.) the Secretary of the Interior may tion, see Form 3468, Investment Credit, and
Note. No income tax deduction is available have to certify which of the multiple buildings section 170(f)(14).
if you give part of your remainder interest in any qualify as certified historic structures.
kind of property. See Partial Interest in Property A registered historic district is any district lis- Qualified real property interest. This is any
Not in Trust, above. ted in the National Register of Historic Places. A of the following interests in real property.
state or local historic district may also qualify as
Qualified Conservation a registered historic district if the district and the 1. Your entire interest in real estate other
Contribution enabling statutes are certified by the Secretary than a mineral interest (subsurface oil,
of the Interior. You can claim a deduction for a gas, or other minerals, and the right of ac-
qualified conservation contribution of a National cess to these minerals).
A qualified conservation contribution is a contri- Register building. This contribution can take the 2. A remainder interest.
bution of a qualified real property interest to a form of a qualified real property interest that is
qualified organization to be used only for con- an easement or other restriction on all or part of 3. A restriction (granted in perpetuity) on the
servation purposes as defined in section 170(h) the exterior or interior of the building. use that may be made of the real property;
(4). You can claim a deduction for a qualified also commonly known as an easement, a
conservation contribution of a historically signifi- restrictive covenant, an equitable servi-
Qualified organization. For purposes of a cant building. This can take the form of a contri- tude, or a perpetual conservation restric-
qualified conservation contribution, a qualified bution of a qualified real property interest that is tion, depending upon terminology applica-
organization is: an easement or other restriction on all or part of ble where the real property is located. See
• A governmental unit; the interior of the building. However, you cannot Regulations section 1.170A-14(b)(2) for
• A publicly supported charitable, religious, claim a deduction for a contribution of a quali- further information.
scientific, literary, educational, etc., organi- fied real property interest that is an easement or
zation; or other restriction on the exterior of a building un- Valuation. A qualified real property interest
• An organization that is controlled by, and less the easement or other restriction meets described in (1) consists of the following.
operated for the exclusive benefit of, a gov- each of the following three conditions. • Your entire interest in real property with you
ernmental unit or a publicly supported retaining a qualified mineral interest, or
charity. 1. The restriction must preserve the entire your entire interest in the real property
The organization must also have a commitment exterior of the building and must prohibit when someone else owns the qualified
to protect the conservation purposes of the don- any change to the exterior of the building mineral interest and the probability of sur-
ation and must have the resources to enforce (including its front , sides, rear, and height) face mining occurring is so remote as to be
the restrictions. that is inconsistent with its historical char- negligible. A qualified mineral interest
acter. gives you the right to access subsurface
Note. A qualified organization is a certain 2. You and the organization receiving the oil, gas, or other minerals. You determine
group of charities than a charity that qualifies contribution must enter into a written the FMV of the real property absent the
under section 170(c) for an income tax charita- agreement certifying, under penalty of per- qualified mineral interest in the same man-
ble deduction. jury, that the organization: ner that you determine the FMV of real es-
tate. See Real Estate, earlier.

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• A remainder interest in real property. You of qualified real property interest exceeds 2.5 Form 8283. You must file a Form 8283 if the
determine the FMV of a remainder interest times the sum of each member’s relevant basis amount of your deduction for each noncash
in real property as directed earlier under in such pass-through entity, each member of contribution is more than $500, and when you
Remainder Interest in Real Property. such pass-through entity cannot claim a deduc- donate certain publicly traded securities for
• A conservation restriction (granted in per- tion for the charitable conservation contribution. which market quotations are readily available;
petuity) on the use which may be made of For the purpose of this disallowance rule, certain intellectual property, like a patent; a ve-
real property. the pass-through entity must calculate the sum hicle for which you obtained a CWA meeting the
The value of the charitable contribution of a of the relevant basis of all members of the requirements of section 170(f)(12)(B) (including
perpetual conservation restriction (conservation pass-through entity and report it on the Form a car, boat, or airplane) for which your deduc-
easement) is the FMV of the easement at the 8283. Relevant basis is, with respect to any tion is limited to the gross proceeds from its
time of the contribution. In determining the FMV member, the portion of the member’s modified sale; and inventory and other similar property
of a conservation easement, if there is a sub- basis in its interest in the pass-through entity described in section 1221(a)(1). You must also
stantial record of arm's-length sales of conser- that is allocable to the portion of the real prop- file a Form 8283 if you have a group of similar
vation easements on other properties that are erty with respect to which the qualified conser- items for which a total deduction of over $500 is
the same as or very similar to the donated con- vation contribution is made. Modified basis, with claimed. See Form 8283 below.
servation easement, you must take into account respect to any member, is the adjusted basis in Similar items of property are items of the
the selling price of these easements. If there are the member’s interest in the pass-through entity same general category or type, such as coin
no comparable sales, the FMV of the conserva- as determined (I) immediately before the con- collections, paintings, books, clothing, jewelry,
tion easement is generally determined indirectly servation contribution, (II) without regard to the nonpublicly traded stock, land, or buildings.
as the difference between the FMVs of the member’s share of any liabilities of the
property before and after the grant of the con- pass-through entity, and (III) by the entity after Example. You claimed a deduction of $600
servation easement. The FMV of the property taking into account the adjustments described for inventory, $7,000 for publicly traded securi-
before the grant of the conservation easement in subclauses (I) and (II). The pass-through en- ties (quotations published daily), and $6,000 for
must take into account not only the current use tity must determine such member's modified a collection of 15 books ($400 each).
of the property but also an objective assess- basis.
ment of how immediate or remote the likelihood Appraisal. Many, but not all, charitable contri-
is that the property, without the easement, More information. For more information butions require a qualified appraisal completed
would be developed. In determining whether about qualified conservation contributions, see by a qualified appraiser. See Qualified Ap-
the property could be developed, you must also Pub. 526. praiser and Qualified Appraisal, later.
consider any zoning, conservation, or historical A qualified appraisal is not required for the
preservation laws that would already restrict the donation of:
property's potential highest and best use. Substantiation of • Certain publicly traded securities for which
Finally, if a potential highest and best use is Noncash Charitable market quotations are readily available;
being considered that would require a change • Certain intellectual property, like a patent;
in zoning or other restrictions on the property, Contributions • A vehicle for which you obtained a CWA
you must address whether it is reasonably prob- meeting the requirements of section 170(f)
able that such a change would be permitted. What you need to substantiate your deduction (12)(B) (including a car, boat, or airplane)
Granting a conservation easement may in- depends upon the property being donated and for which your deduction is limited to the
crease, rather than reduce, the value of prop- the claimed value of this property. There are gross proceeds from its sale;
erty, and in such a situation no deduction would three types of documents that may be required • Inventory and other similar property descri-
be allowed. in order to substantiate your contribution. bed in section 1221(a)(1); and
Example. You own 10 acres of farmland. • Contemporaneous Written Acknowledg- • Noncash property valued at less than
Similar land in the area has an FMV of $2,000 ment (CWA). $5,000 unless the property is an item of
an acre. However, land in the general area that • Form 8283. clothing or a household item that is not in
is restricted solely to farm use has an FMV of • An appraisal, which in some cases must good used condition for which you are
$1,500 an acre. Your county wants to preserve be a “qualified appraisal,” completed by a claiming a value of more than $500.
open space and prevent further development in “qualified appraiser.” The appraiser's opinion is never more valid
than the facts on which it is based; without
your area. CWA. You must get a CWA from the charity to these facts, it is simply a guess.
You grant to the county an enforceable open which you contributed property on or before the
space easement in perpetuity on 8 of the 10 earlier of the date on which you file a return re- Even when a qualified appraisal by a quali-
acres, restricting its use to farmland. The value porting the donation or the due date (including fied appraiser is not required, you must support
of this easement is $4,000, determined as fol- extensions) for filing such return. the value you claim for the property you contrib-
lows. ute to charity. For property like publicly traded
CWA must include the following:
securities for which market quotations are read-
FMV of the property before 1. The name of the organization; ily available, you may not need an appraisal by
granting easement: an appraiser. When you need an appraisal by
$2,000 × 10 acres . . . . . . . . . . . . . . . . $20,000 2. The amount of any monetary contribution;
an appraiser to support the value of your deduc-
FMV of the property after 3. A description (but not the FMV) of any tion, more weight is given to an appraisal by an
granting easement: contribution of property; appraiser that satisfies most of the require-
$1,500 × 8 acres . . . . . . . . . $12,000
$2,000 × 2 acres . . . . . . . . . 4,000 16,000 4. A statement that no goods or services ments of a qualified appraisal by a qualified ap-
Value of easement . . . . . . . . . . $4,000 were provided by the organization in return praiser.
for the contribution, if that was the case;
Cost of appraisals. You may not take a chari-
If you later transfer in fee your remaining in- 5. If the organization did provide goods or table contribution deduction for fees you pay for
terest in the 8 acres to another qualified organi- services in return for the contribution, a appraisals of your donated property.
zation, the FMV of your remaining interest is the description and good faith estimate of the
FMV of the 8 acres reduced by the FMV of the FMV of the goods or services; and Donation less than $5,000. If you give prop-
easement granted to the first organization. 6. If the organization only provided intangible erty worth less than $250 to charity, you should
Disallowance of deductions for certain con- religious benefits (described later in this obtain a receipt from the charity. The receipt
servation contributions by pass-through publication) in return for the contribution, a should include the charity's name and address,
entities. Subject to three exceptions, if the statement so providing. and the date you made the gift. If you give prop-
erty worth between $250 and $5,000, you must
amount of the pass-through entity’s contribution See Pub. 1771 for examples of CWAs. obtain a CWA. You must also substantiate the
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FMV you claim for the property. You may need • The issuer or agent keeps books and re- report dated before the date of the contri-
to file a Form 8283. cords that list for each transaction during bution, the valuation effective date must be
the computation period the date of settle- no earlier than 60 days before the date of
Deduction over $500 for certain clothing or ment of the transaction, the name and ad- the contribution and no later than the date
household items. You must include with your dress of the broker or dealer making the of the contribution. For an appraisal report
return a qualified appraisal prepared by a quali- market in which the transaction occurred, dated on or after the date of the contribu-
fied appraiser of any single item of clothing or and the trading price and volume; and tion, the valuation effective date must be
any household item that is not in good used • The issuer or agent permits the IRS to re- the date of the contribution.
condition or better, and for which you deduct view the books and records described in • Does not involve a prohibited appraisal fee.
more than $500. Attach the appraisal and Form the above bullet point with respect to trans-
8283. See Household Items and Used Clothing, actions during the computation period You must receive the qualified appraisal be-
earlier. You must also obtain a CWA for this upon receiving reasonable notice. fore the due date, including extensions, of the
return on which a charitable contribution deduc-
donation. An interdealer quotation system is any sys- tion is first claimed for the donated property. If
tem of general circulation to brokers and deal- the deduction is first claimed on an amended
Deductions of More Than ers that regularly disseminates quotations of return, the qualified appraisal must be received
$5,000 obligations by two or more identified brokers or before the date on which the amended return is
dealers who are not related to either the issuer filed. An appraisal is not a qualified appraisal if
or agent who computes the average trading you fail to disclose or you misrepresent facts to
Generally, if the claimed deduction for an item price of the security. A quotation sheet prepared your appraiser and a reasonable person would
or group of similar items of donated property is and distributed by a broker or dealer in the reg- expect this failure or misrepresentation to cause
more than $5,000, and was made after Decem- ular course of business and containing only the appraiser to misstate the value of the prop-
ber 31, 1984, you must: quotations of that broker or dealer is not an in- erty you contributed.
• Obtain a qualified appraisal signed and terdealer quotation system.
dated by a qualified appraiser, and The average trading price is the average Form 8283 must be completed and attached
• Complete and attach Form 8283 to your price of all transactions (weighted by volume), to your tax return. Generally, you do not need to
tax return. other than original issue or redemption transac- attach the qualified appraisal itself, but you
There are exceptions, discussed later. You tions, conducted through a U.S. office of a should keep a copy as long as it may be rele-
should keep the appraiser's report with your broker or dealer who maintains a market in the vant under the tax law. There are four excep-
written records. Records are discussed in Pub. issue of the security during the computation pe- tions.
526. You must also obtain a CWA for this dona- riod. Bid and asked quotations are not taken • If you claim a deduction of $20,000 or
tion. into account. more for donations of art, you should at-
The computation period is weekly during tach a complete copy of the appraisal. See
The phrase “similar items” means property October through December and monthly during Art and Collectibles, earlier.
of the same generic category or type (whether January through September. The weekly com- • If you claim a deduction of more than
or not donated to the same donee), such as putation periods during October through De- $500,000 for a donation of property, you
stamps, coins, fine art, books, nonpublicly tra- cember begin with the first Monday in October must attach the appraisal. See Deductions
ded stock, nonpublicly traded securities other and end with the first Sunday following the last of More Than $500,000, earlier.
than nonpublicly traded stock, land, buildings, Monday in December. • If you claim a deduction of more than $500
clothing, jewelry, furniture, household goods, for an article of clothing, or a household
collectibles, or decorative arts. For example, if item, that is not in good used condition or
you give books to three schools and you deduct Deductions of More Than better, you must attach the appraisal. See
$2,000, $2,500, and $900, respectively, your $500,000 Deduction over $500 for certain clothing or
claimed deduction is more than $5,000 for household items, earlier.
these books. You must get a qualified appraisal If you claim a deduction of more than $500,000 • If you claim a deduction for an easement or
of the books and for each school you must at- for a donation of property, you must attach a other restriction on the exterior of a build-
tach a fully completed Form 8283, Section B, to qualified appraisal of the property to your return. ing in a historic district, you must attach the
your tax return. This does not apply to contributions of cash, in- appraisal. See Certified historic structures,
ventory, publicly traded stock, or intellectual earlier.
Publicly traded securities. Publicly traded property.
securities are: Prohibited appraisal fee. Generally, no part
• Listed on a stock exchange in which quota- If you do not obtain a qualified appraisal of the fee arrangement for a qualified appraisal
tions are published on a daily basis, and/or attach the appraisal to your return, if re- can be based on a percentage of the appraised
• Regularly traded in a national or regional quired, you cannot deduct your contribution, un- value of the property. If a fee arrangement is
over-the-counter market for which pub- less your failure to attach the appraisal is due to based on what is allowed as a deduction, after
lished quotations are available, or reasonable cause and not to willful neglect. IRS examination or otherwise, it is treated as a
• Shares of an open-end investment com- fee based on a percentage of appraised value.
pany (mutual fund) for which quotations
are published on a daily basis in a newspa- Qualified Appraisal Information included in qualified appraisal.
per of general circulation throughout the A qualified appraisal must include the following
United States. A qualified appraisal is an appraisal document information.
• The issue is regularly traded during the that meets the following requirements.
computation period (defined later) in a • Is made, signed, and dated by a qualified 1. A description of the property in sufficient
market for which there is an “interdealer appraiser (defined later) in accordance detail for a person who is not generally fa-
quotation system” (defined later); with the substance and principles of the miliar with the type of property to deter-
• The issuer or agent computes the “average Uniform Standards of Professional Ap- mine that the property appraised is the
trading price” (defined later) for the same praisal Practice. property that was (or will be) contributed.
issue for the computation period; • Meets the relevant requirements of Regu- 2. The physical condition of any tangible per-
• The average trading price and total volume lations section 1.170A-17(a) and (b). sonal property or real property.
of the issue during the computation period • Is signed by the qualified appraiser and
are published in a newspaper of general dated no earlier than 60 days before the 3. The date (or expected date) of contribu-
circulation throughout the United States; date of the contribution and no later than tion (valuation effective date).
not later than the last day of the month fol- the due date, including extensions, of the 4. The terms of any agreement or under-
lowing the end of the calendar quarter in return on which the deduction for the con- standing entered into (or expected to be
which the computation period ends; tribution is first claimed. For an appraisal entered into) by or on behalf of the donor
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and donee that relates to the use, sale, or 2. The cost, date, and manner of acquisition. 2. The individual regularly prepares apprais-
other disposition of the donated property, 3. A history of the item's prior ownership als for which they are paid.
including, for example, the terms of any (provenance). 3. The individual is not an excluded individ-
agreement or understanding that: ual (defined later).
a. Temporarily or permanently restricts a 4. The exhibition history of the object.
donee's right to use or dispose of the 5. Authenticity documentation. Reasonable In addition, the appraiser must make a dec-
donated property; due diligence should include catalogue laration in the appraisal that, because of their
b. Earmarks donated property for a par- raisonné citations, foundation numbers, background, experience, education, and mem-
ticular use; or and/or letters from a recognized expert, bership in professional associations, they are
when warranted. qualified to make appraisals of the type of prop-
c. Reserves to, or confers upon, anyone erty being valued. The appraiser must complete
(other than a donee organization or an 6. A professional quality color image of the the Declaration of Appraiser section on Form
organization participating with a do- item. 8283, Section B. More than one appraiser may
nee organization in cooperative fund- 7. The facts on which the appraisal was appraise the property, provided that each com-
raising) any right to the income from based, such as: plies with the requirements, including signing
the donated property or to the pos- the qualified appraisal and the Declaration of
session of the property, including the a. Identification and analysis of the Appraiser section on Form 8283, Section B.
right to vote donated securities, to ac- item's value characteristics;
Excluded individuals. The following indi-
quire the property by purchase or oth- b. Comparable sales of similar works by viduals cannot be qualified appraisers for the
erwise, or to designate the person the artist which were sold in a time pe- donated property.
having the income, possession, or riod close to the valuation date;
right to acquire the property. 1. The donor of the property or the taxpayer
c. The economic state of the art market who claims the deduction.
5. The name, address, and taxpayer identifi- at the time of valuation, particularly
cation number (TIN) of the qualified ap- with respect to the specific property; 2. The donee of the property.
praiser and, if the appraiser is a partner, and 3. A party to the transaction in which the do-
an employee, or an independent contrac- nor acquired the property being appraised,
tor engaged by a person other than the d. The standing of the artist in their pro-
donor, the name, address, and taxpayer fession and in the particular artistic unless the property is donated within 2
identification number of the partnership or school or time period. months of the date of acquisition and its
appraised value is not more than its ac-
the person who employs or engages the Number of qualified appraisals. A sepa- quisition price. This applies to the person
appraiser. rate qualified appraisal is required for each item who sold, exchanged, or gave the property
6. The qualifications of the qualified ap- of property that is not included in a group of to the donor, or any person who acted as
praiser who signs the appraisal to value similar items of property. You need only one an agent for the transferor or donor in the
the type of property being valued, includ- qualified appraisal for a group of similar items of transaction.
ing the appraiser's background, experi- property contributed in the same tax year, but
ence, education, and any membership in you may get separate appraisals for each item. 4. Any person employed by any of the above
professional appraisal associations. A qualified appraisal for a group of similar items persons. For example, if the donor ac-
must provide all of the required information for quired a painting from an art dealer, nei-
7. A statement that the appraisal was pre- each item of similar property. The appraiser, ther the dealer nor persons employed by
pared for income tax purposes. however, may provide a group description for the dealer can be qualified appraisers for
8. The declaration required by Regulations selected items the total value of which is not that painting.
section 1.170A-17(3)(iv). more than $100. 5. Any person related under section 267(b)
of the Internal Revenue Code to any of the
9. The appraised FMV on the date (or expec- Qualified appraiser. A qualified appraiser is above persons or married to a person rela-
ted date) of contribution. an individual with verifiable education and expe- ted under section 267(b) to any of the
10. The method of valuation used to deter- rience in valuing the type of property for which above persons.
mine FMV, such as the sales comparison the appraisal is performed.
6. An appraiser who appraises regularly for a
approach, cost approach, or income ap- 1. The individual: person in (1), (2), or (3), and who does not
proach. perform a majority of their appraisals
a. Has earned an appraisal designation
11. The specific basis for the valuation, such from a generally recognized profes- made during their tax year for other per-
as any specific comparable sales transac- sional appraiser organization, for the sons.
tion. type of property being valued; or 7. An individual who receives a prohibited
12. The report completion date. b. Has met certain minimum education appraisal fee for the appraisal of the dona-
Art objects. The following are examples of requirements and 2 or more years of ted property. See Prohibited appraisal fee,
information that should be included in a descrip- experience in valuing the type of prop- earlier.
tion of donated art objects. Appraisals of art ob- erty being valued. To meet the mini- 8. An individual who is prohibited from prac-
jects—paintings in particular—should include mum education requirement, the indi- ticing before the IRS under section 330(c)
all of the following. vidual must have successfully of title 31 of the United States Code at any
completed professional or col- time during the 3-year period ending on
1. A complete description of the object, indi- lege-level coursework obtained from: the date the appraisal is signed by the in-
cating the: dividual.
i. A professional or college-level
a. Dimensions; educational organization, In addition, an individual is not a qualified
b. Subject matter; ii. A professional trade or appraiser appraiser for a particular donation if the donor
c. Medium and support; organization that regularly offers had knowledge of facts that would cause a rea-
educational programs in valuing sonable person to expect the appraiser to
d. Name of the artist (or culture); the type of property, or falsely overstate the value of the donated prop-
erty. For example, if the donor and the appraiser
e. Approximate date created; and iii. An employer as part of an em- make an agreement concerning the amount at
f. Condition, including a condition report ployee apprenticeship or educa- which the property will be valued, and the donor
by a professional conservator if tion program similar to professio- knows that amount is more than the FMV of the
condition affects value. nal or college-level courses.

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property,  the  appraiser  is  not  a  qualified  ap-       group of independent dealers and cura-               statements  (by  mail  or  in  a  digital  format)  or 
praiser for the donation.                                   tors. A referral to AAS is mandatory for fine        other  government  payment  statements  (Form 
                                                            and decorative art valued at $50,000 or              1099-G); and interest, dividend, and retirement 
Appraiser  penalties.     An  appraiser  who                more; or                                             statements  from  banks  and  investment  firms 
prepares an incorrect appraisal may have to pay        •    Contract with an independent appraiser to            (Forms  1099),  you  have  several  options  to 
a penalty if the appraiser knows, or reasonably             appraise the property when the objects re-           choose from to prepare and file your tax return. 
should  have  known,  the  appraisal  would  be             quire appraisers of highly specialized ex-           You  can  prepare  the  tax  return  yourself,  see  if 
used in connection with a return or claim for re-           perience and knowledge.                              you qualify for free tax preparation, or hire a tax 
fund, and the appraisal resulted in:                                                                             professional to prepare your return.
1. A substantial valuation misstatement,               Responsibility of the IRS. The IRS is respon-
                                                       sible  for  reviewing  appraisals,  but  it  is  not  re- Free  options  for  tax  preparation.   Your  op-
2. A substantial estate or gift valuation under-       sponsible for making them. Supporting the FMV             tions for preparing and filing your return online 
     statement, or                                     listed on your return is your responsibility.             or in your local community, if you qualify, include 
3. A gross valuation misstatement.                                                                               the following.
                                                       The IRS does not accept appraisals without                • Free File. This program lets you prepare 
The penalty imposed on the appraiser is the            question.   The  IRS  does  not  recognize  any             and file your federal individual income tax 
smaller of:                                            particular  appraiser  or  organization  of  apprais-       return for free using software or Free File 
1. The greater of:                                     ers.                                                        Fillable Forms. However, state tax prepara-
                                                                                                                   tion may not be available through Free File. 
     a. 10% of the underpayment due to the             Timing of IRS action.   The IRS generally does              Go to IRS.gov/FreeFile to see if you qualify 
     misstatement, or                                  not approve valuations or appraisals before the             for free online federal tax preparation, e-fil-
     b. $1,000; or                                     actual  filing  of  the  tax  return  to  which  the  ap-   ing, and direct deposit or payment options.
                                                       praisal  applies.  In  addition,  the  IRS  generally     • VITA. The Volunteer Income Tax Assis-
2. 125% of the gross income received for the           does  not  issue  advance  rulings  approving  or           tance (VITA) program offers free tax help to 
     appraisal.                                        disapproving such appraisals.                               people with low-to-moderate incomes, per-
No  penalty  is  imposed  if  the  appraiser  can          Exception.  For a request submitted as de-              sons with disabilities, and limited-Eng-
establish that the appraisal’s value is more likely    scribed  earlier  under Art  valued  at  $50,000  or        lish-speaking taxpayers who need help 
than not correct.                                      more,  the  IRS  will  issue  a  Statement  of  Value       preparing their own tax returns. Go to 
In  addition,  any  appraiser  who  falsely  or        that can be relied on by the donor of the item of           IRS.gov/VITA, download the free IRS2Go 
fraudulently overstates the value of property de-      art.                                                        app, or call 800-906-9887 for information 
scribed in a qualified appraisal of a Form 8283            The  Statement  of  Value  is  a  fee-based  re-        on free tax return preparation.
that the appraiser has signed may be subject to        view  of  the  taxpayer's  appraisal  and  claimed        • TCE. The Tax Counseling for the Elderly 
a civil penalty for aiding and abetting as under-      value. It does not guarantee a taxpayer's entitle-          (TCE) program offers free tax help for all 
statement of tax liability, and may have their ap-     ment  to  a  deduction  nor  does  it  substitute  for      taxpayers, particularly those who are 60 
praisal disregarded.                                   the substantiation documents, such as the CWA               years of age and older. TCE volunteers 
                                                       or Form 8283.                                               specialize in answering questions about 
                                                                                                                   pensions and retirement-related issues 
Form 8283                                                                                                          unique to seniors. Go to IRS.gov/TCE or 
                                                                                                                   download the free IRS2Go app for informa-
Generally,  if  the  claimed  deduction  for  an  item Penalty                                                     tion on free tax return preparation.
of  donated  property  is  more  than  $5,000,  you                                                              • MilTax. Members of the U.S. Armed 
must  attach  Form  8283  to  your  tax  return  and   You may be liable for a penalty if you misstate             Forces and qualified veterans may use Mil-
complete Section B.                                    the value or adjusted basis of donated property.            Tax, a free tax service offered by the De-
                                                                                                                   partment of Defense through Military One-
If you do not attach Form 8283 to your return          20%  penalty.   The  penalty  is  20%  of  the  un-         Source. For more information, go to 
and complete Section B, the deduction will not         derpayment  of  tax  related  to  the  misstatement         MilitaryOneSource MilitaryOneSource.mil/ (
be allowed unless your failure was due to rea-         if:                                                         MilTax).
sonable  cause  and  not  willful  neglect,  or  was   •    The value or adjusted basis claimed on the                 Also, the IRS offers Free Fillable Forms, 
due to a good faith omission.                               return is 150% or more of the correct                  which  can  be  completed  online  and  then 
You  must  attach  a  separate  Form  8283  for             amount, and                                            e-filed regardless of income.
each item of contributed property that is not part     •    You underpaid your tax by more than 
of a group of similar items. If you contribute sim-         $5,000 because of the misstatement.                  Using online tools to help prepare your re-
ilar items of property to the same donee organi-                                                                 turn. Go to IRS.gov/Tools for the following.
zation, you need attach only one Form 8283 for         40% penalty.    The penalty is 40%, rather than           • The Earned Income Tax Credit Assistant 
those  items.  If  you  contribute  similar  items  of 20%, if:                                                    (IRS.gov/EITCAssistant) determines if 
property to more than one donee organization,          •    The value or adjusted basis claimed on the             you’re eligible for the earned income credit 
you  must  attach  a  separate  form  for  each  do-        return is 200% or more of the correct                  (EIC).
nee.                                                        amount, and                                          • The Online EIN Application IRS.gov/EIN (   ) 
                                                       •    You underpaid your tax by more than                    helps you get an employer identification 
                                                            $5,000 because of the misstatement.                    number (EIN) at no cost.
IRS Review of Appraisals                                                                                           The Tax Withholding Estimator IRS.gov/ (
                                                                                                                 •
                                                                                                                   W4App) makes it easier for you to estimate 
In reviewing an income tax return, the IRS may         How To Get Tax Help                                         the federal income tax you want your em-
accept the claimed value of the donated prop-
                                                                                                                   ployer to withhold from your paycheck. 
erty,  based  on  information  or  appraisals  sent    If  you  have  questions  about  a  tax  issue;  need       This is tax withholding. See how your with-
with the return, or may make its own determina-        help preparing your tax return; or want to down-            holding affects your refund, take-home pay, 
tion of FMV. In either case, the IRS may:              load free publications, forms, or instructions, go          or tax due.
•  Contact the taxpayer to get more informa-           to  IRS.gov to find resources that can help you 
   tion;                                               right away.                                               • The First-Time Homebuyer Credit Account 
•  Refer any valuation issues to an IRS ap-                                                                        Look-up IRS.gov/HomeBuyer (    ) tool pro-
   praiser or valuation specialist;                    Preparing  and  filing  your  tax  return.    After         vides information on your repayments and 
•  Refer the issue to Art Appraisal Services           receiving  all  your  wage  and  earnings  state-           account balance.
   (AAS), a department of professional ap-             ments (Forms W-2, W-2G, 1099-R, 1099-MISC,                • The Sales Tax Deduction Calculator 
   praisers who consults with the                      1099-NEC, etc.); unemployment compensation                  (IRS.gov/SalesTax) figures the amount you 
   Commissioner's Art Advisory Panel, a 
12                                                                                                                             Publication 561 (2-2024)

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can claim if you itemize deductions on Watching IRS videos. The IRS Video portal • Make a payment or view 5 years of pay-
Schedule A (Form 1040). (IRSVideos.gov) contains video and audio pre- ment history and any pending or sched-
sentations for individuals, small businesses, uled payments.
Getting answers to your tax ques- and tax professionals. • Access your tax records, including key
tions. On IRS.gov, you can get data from your most recent tax return, and
up-to-date information on current Online tax information in other languages. transcripts.
events and changes in tax law. You can find information on IRS.gov/ • View digital copies of select notices from
• IRS.gov/Help: A variety of tools to help you MyLanguage if English isn’t your native lan- the IRS.
get answers to some of the most common guage. • Approve or reject authorization requests
tax questions. from tax professionals.
• IRS.gov/ITA: The Interactive Tax Assistant, Free Over-the-Phone Interpreter (OPI) Serv- • View your address on file or manage your
a tool that will ask you questions and, ice. The IRS is committed to serving taxpayers communication preferences.
based on your input, provide answers on a with limited-English proficiency (LEP) by offer-
number of tax topics. ing OPI services. The OPI Service is a federally Get a transcript of your return. With an on-
• IRS.gov/Forms: Find forms, instructions, funded program and is available at Taxpayer line account, you can access a variety of infor-
and publications. You will find details on Assistance Centers (TACs), most IRS offices, mation to help you during the filing season. You
the most recent tax changes and interac- and every VITA/TCE tax return site. The OPI can get a transcript, review your most recently
tive links to help you find answers to your Service is accessible in more than 350 lan- filed tax return, and get your adjusted gross in-
questions. guages. come. Create or access your online account at
• You may also be able to access tax infor- IRS.gov/Account.
mation in your e-filing software. Accessibility Helpline available for taxpay-
ers with disabilities. Taxpayers who need in- Tax Pro Account. This tool lets your tax pro-
formation about accessibility services can call fessional submit an authorization request to ac-
Need someone to prepare your tax return? 833-690-0598. The Accessibility Helpline can cess your individual taxpayer IRS online ac-
There are various types of tax return preparers, answer questions related to current and future count. For more information, go to IRS.gov/
including enrolled agents, certified public ac- accessibility products and services available in TaxProAccount.
countants (CPAs), accountants, and many oth- alternative media formats (for example, braille,
ers who don’t have professional credentials. If large print, audio, etc.). The Accessibility Help- Using direct deposit. The safest and easiest
you choose to have someone prepare your tax line does not have access to your IRS account. way to receive a tax refund is to e-file and
return, choose that preparer wisely. A paid tax For help with tax law, refunds, or account-rela- choose direct deposit, which securely and elec-
preparer is: ted issues, go to IRS.gov/LetUsHelp. tronically transfers your refund directly into your
• Primarily responsible for the overall sub- financial account. Direct deposit also avoids the
stantive accuracy of your return, Note. Form 9000, Alternative Media Prefer- possibility that your check could be lost, stolen,
• Required to sign the return, and ence, or Form 9000(SP) allows you to elect to destroyed, or returned undeliverable to the IRS.
• Required to include their preparer tax iden- receive certain types of written correspondence Eight in 10 taxpayers use direct deposit to re-
tification number (PTIN). in the following formats. ceive their refunds. If you don’t have a bank ac-
Although the tax preparer always signs • Standard Print. count, go to IRS.gov/DirectDeposit for more in-
! the return, you're ultimately responsible • Large Print. formation on where to find a bank or credit
union that can open an account online.
CAUTION for providing all the information re- Braille.
•
quired for the preparer to accurately prepare Reporting and resolving your tax-related
your return and for the accuracy of every item • Audio (MP3).
identity theft issues.
reported on the return. Anyone paid to prepare • Plain Text File (TXT). • Tax-related identity theft happens when
tax returns for others should have a thorough someone steals your personal information
understanding of tax matters. For more informa- • Braille Ready File (BRF).
to commit tax fraud. Your taxes can be af-
tion on how to choose a tax preparer, go to Tips Disasters. Go to IRS.gov/DisasterRelief to re- fected if your SSN is used to file a fraudu-
for Choosing a Tax Preparer on IRS.gov. view the available disaster tax relief. lent return or to claim a refund or credit.
Getting tax forms and publications. Go to • The IRS doesn’t initiate contact with tax-
payers by email, text messages (including
Employers can register to use Business IRS.gov/Forms to view, download, or print all shortened links), telephone calls, or social
Services Online. The Social Security Adminis- the forms, instructions, and publications you media channels to request or verify per-
tration (SSA) offers online service at SSA.gov/ may need. Or, you can go to IRS.gov/ sonal or financial information. This includes
employer for fast, free, and secure W-2 filing op- OrderForms to place an order. requests for personal identification num-
tions to CPAs, accountants, enrolled agents,
bers (PINs), passwords, or similar informa-
and individuals who process Form W-2, Wage Getting tax publications and instructions in tion for credit cards, banks, or other finan-
and Tax Statement, and Form W-2c, Corrected eBook format. Download and view most tax cial accounts.
Wage and Tax Statement. publications and instructions (including the In- Go to IRS.gov/IdentityTheft, the IRS Iden-
structions for Form 1040) on mobile devices as •
tity Theft Central webpage, for information
IRS social media. Go to IRS.gov/SocialMedia eBooks at IRS.gov/eBooks. on identity theft and data security protec-
to see the various social media tools the IRS
uses to share the latest information on tax IRS eBooks have been tested using Apple's tion for taxpayers, tax professionals, and
changes, scam alerts, initiatives, products, and iBooks for iPad. Our eBooks haven’t been tes- businesses. If your SSN has been lost or
services. At the IRS, privacy and security are ted on other dedicated eBook readers, and stolen or you suspect you’re a victim of
our highest priority. We use these tools to share eBook functionality may not operate as inten- tax-related identity theft, you can learn
public information with you. Don’t post your so- ded. what steps you should take.
cial security number (SSN) or other confidential Access your online account (individual tax- • Get an Identity Protection PIN (IP PIN). IP
PINs are six-digit numbers assigned to tax-
information on social media sites. Always pro- payers only). Go to IRS.gov/Account to se- payers to help prevent the misuse of their
tect your identity when using any social net- curely access information about your federal tax SSNs on fraudulent federal income tax re-
working site. account. turns. When you have an IP PIN, it pre-
The following IRS YouTube channels provide • View the amount you owe and a break- vents someone else from filing a tax return
short, informative videos on various tax-related down by tax year. with your SSN. To learn more, go to
topics in English, Spanish, and ASL. • See payment plan details or apply for a IRS.gov/IPPIN.
• Youtube.com/irsvideos. new payment plan.
• Youtube.com/irsvideosmultilingua.
• Youtube.com/irsvideosASL.
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Ways to check on the status of your refund. Checking the status of your amended re- the IRS. Go to TaxpayerAdvocate.IRS.gov to
• Go to IRS.gov/Refunds. turn. Go to IRS.gov/WMAR to track the status help you understand what these rights mean to
• Download the official IRS2Go app to your of Form 1040-X amended returns. you and how they apply. These are your rights.
mobile device to check your refund status. Know them. Use them.
• Call the automated refund hotline at It can take up to 3 weeks from the date
CAUTION show up in our system, and processing
800-829-1954. ! you filed your amended return for it to What Can TAS Do for You?
The IRS can’t issue refunds before it can take up to 16 weeks.
TAS can help you resolve problems that you
! mid-February for returns that claimed can’t resolve with the IRS. And their service is
CAUTION the EIC or the additional child tax credit
Understanding an IRS notice or letter free. If you qualify for their assistance, you will
(ACTC). This applies to the entire refund, not you’ve received. Go to IRS.gov/Notices to find be assigned to one advocate who will work with
just the portion associated with these credits. additional information about responding to an you throughout the process and will do every-
IRS notice or letter. thing possible to resolve your issue. TAS can
Making a tax payment. Payments of U.S. tax help you if:
must be remitted to the IRS in U.S. dollars. Responding to an IRS notice or letter. You • Your problem is causing financial difficulty
Digital assets are not accepted. Go to IRS.gov/ can now upload responses to all notices and for you, your family, or your business;
Payments for information on how to make a pay- letters using the Document Upload Tool. For no- • You face (or your business is facing) an im-
ment using any of the following options. tices that require additional action, taxpayers mediate threat of adverse action; or
• IRS Direct Pay: Pay your individual tax bill will be redirected appropriately on IRS.gov to • You’ve tried repeatedly to contact the IRS
or estimated tax payment directly from your take further action. To learn more about the tool, but no one has responded, or the IRS
checking or savings account at no cost to go to IRS.gov/Upload. hasn’t responded by the date promised.
you.
• Debit Card, Credit Card, or Digital Wallet: Note. You can use Schedule LEP (Form
Choose an approved payment processor 1040), Request for Change in Language Prefer- How Can You Reach TAS?
to pay online or by phone. ence, to state a preference to receive notices,
• Electronic Funds Withdrawal: Schedule a letters, or other written communications from TAS has offices in every state, the District of
payment when filing your federal taxes us- the IRS in an alternative language. You may not Columbia, and Puerto Rico. To find your advo-
ing tax return preparation software or immediately receive written communications in cate’s number:
through a tax professional. the requested language. The IRS’s commitment • Go to TaxpayerAdvocate.IRS.gov/Contact-
• Electronic Federal Tax Payment System: to LEP taxpayers is part of a multi-year timeline Us;
Best option for businesses. Enrollment is that began providing translations in 2023. You • Download Pub. 1546, The Taxpayer Advo-
required. will continue to receive communications, includ- cate Service Is Your Voice at the IRS, avail-
• Check or Money Order: Mail your payment ing notices and letters, in English until they are able at IRS.gov/pub/irs-pdf/p1546.pdf;
to the address listed on the notice or in- translated to your preferred language. • Call the IRS toll free at 800-TAX-FORM
structions. (800-829-3676) to order a copy of Pub.
• Cash: You may be able to pay your taxes Contacting your local TAC. Keep in mind, 1546;
with cash at a participating retail store. many questions can be answered on IRS.gov • Check your local directory; or
• Same-Day Wire: You may be able to do without visiting a TAC. Go to IRS.gov/LetUsHelp • Call TAS toll free at 877-777-4778.
same-day wire from your financial institu- for the topics people ask about most. If you still
tion. Contact your financial institution for need help, TACs provide tax help when a tax is- How Else Does TAS Help
availability, cost, and time frames. sue can’t be handled online or by phone. All Taxpayers?
TACs now provide service by appointment, so
Note. The IRS uses the latest encryption you’ll know in advance that you can get the TAS works to resolve large-scale problems that
technology to ensure that the electronic pay- service you need without long wait times. Be- affect many taxpayers. If you know of one of
ments you make online, by phone, or from a fore you visit, go to IRS.gov/TACLocator to find these broad issues, report it to TAS at IRS.gov/
mobile device using the IRS2Go app are safe the nearest TAC and to check hours, available SAMS. Be sure to not include any personal tax-
and secure. Paying electronically is quick, easy, services, and appointment options. Or, on the payer information.
and faster than mailing in a check or money or- IRS2Go app, under the Stay Connected tab,
der. choose the Contact Us option and click on “Lo-
cal Offices.” Low Income Taxpayer Clinics
What if I can’t pay now? Go to IRS.gov/ (LITCs)
Payments for more information about your op-
tions. The Taxpayer Advocate LITCs are independent from the IRS and TAS.
• Apply for an online payment agreement Service (TAS) Is Here To LITCs represent individuals whose income is
(IRS.gov/OPA) to meet your tax obligation Help You below a certain level and who need to resolve
in monthly installments if you can’t pay tax problems with the IRS. LITCs can represent
your taxes in full today. Once you complete What Is TAS? taxpayers in audits, appeals, and tax collection
disputes before the IRS and in court. In addi-
the online process, you will receive imme- TAS is an independent organization within the tion, LITCs can provide information about tax-
diate notification of whether your agree- IRS that helps taxpayers and protects taxpayer payer rights and responsibilities in different lan-
ment has been approved. rights. TAS strives to ensure that every taxpayer guages for individuals who speak English as a
• Use the Offer in Compromise Pre-Qualifier is treated fairly and that you know and under- second language. Services are offered for free
to see if you can settle your tax debt for stand your rights under the Taxpayer Bill of or a small fee. For more information or to find an
less than the full amount you owe. For Rights. LITC near you, go to the LITC page at
more information on the Offer in Compro-
mise program, go to IRS.gov/OIC. TaxpayerAdvocate.IRS.gov/LITC or see IRS
How Can You Learn About Your Pub. 4134, Low Income Taxpayer Clinic List, at
Filing an amended return. Go to IRS.gov/ Taxpayer Rights? IRS.gov/pub/irs-pdf/4134.pdf.
Form1040X for information and updates.
The Taxpayer Bill of Rights describes 10 basic
rights that all taxpayers have when dealing with

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                      To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                 See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                  Terms of purchase or sale 2                                   Reversion interests 7
A                                                                L
Aircraft 5                      D                                Life insurance   7             S
Annuities  7                    Date of contribution 2                                          Stamps 5
Annuity contracts 7             Deductions of more than          M                              Statement of Value  12
Antiques 4                        $5,000  10                                                    Stocks 5
Appraisals  9                   Deductions of more than          Market conditions, effect on 
  Cost of  9                      $500,000  10                     value  3
                                                                                                T
  IRS review of 12                                               O                              Tax help 12
  Qualified appraisal 10        F
Art objects 4                   Fair market value 2              Opinions of professional 
                                                                   appraisers   3               U
  Valued at $20,000 or more  4    Comparable properties, sales 
  Valued at $50,000 or more  4    of   3                                                        Used clothing 4 10, 
Assistance (See Tax help)         Cost 2                         P
                                  Date of contribution 2         Paintings  4                   V
B                                 Determining FMV  2             Partial interest 7             Valuation of property    4
Boats 5                           Opinions of professional       Past events, effect on value 4  Annuities 7
                                  appraisers   3                 Patents 5                       Art and Collectibles    4
Bonds 5                           Problems in determining FMV  3 Penalties:                      Cars, boats, and aircraft 5
Books 5                           Replacement cost   3             Imposed on appraiser 12       Collectibles 4
Business, interest in 7         Form 8283 12                       Imposed on taxpayer  12       Gems and jewelry   5
                                Future events, effect on value 4
C                                                                Publications (See Tax help)     Household items    4
                                                                 Publicly traded securities 10   Interest in a business   7
Cars 5                          G                                                                Inventory 5
Certified historic structure 8  Gems and jewelry  5              Q                               Life insurance and annuity 
Clothing, used  4 10,                                                                            contracts    7
                                                                 Qualified appraisal 10
Coins 5                         H                                Qualified appraiser 11          Partial interest in property 7
Collections:                                                                                     Patents 5
  Books  5                      Household items   4 10,          Qualified conservation 
                                                                   contribution   8              Real estate  6
  Coins  5                                                                                       Remainder interests     7
  Stamps   5                    I                                                                Reversion interests     7
                                                                 R
Comparable properties, sales    Interest in a business 7                                         Stocks and bonds   5
  of 3                          Inventory 5                      Real estate 6                   Terms of years 7
Conservation contribution    8  IRS review of appraisals 12      Remainder interests 7           Used clothing 4
Cost 2                            Exception 12                   Replacement cost   3
  Rate of increase or decrease 2

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