8283 help

[DaveO]

Make sure they mail it.

I had a client make a large donation a few years ago, much less than $50k but still significant. We attached copies of the appraisals and photos of the items donated along with copies of the letters of acknowledgement. Two years later, they get a non-filing notice. Although we had explained the necessity of a paper return to the husband the wife just signed it and filed it since they had e-filed for years. Way to draw attention to yourself.

[JenMO]

Me again, another question. Reading the pub and instructions, the appraisal is not required to be sent in with the return? Just keep in files? They will ask for it, won't they? On page 9 of Pub 561, it says a qualified appraisal is an appraisal document that: (3rd item down) relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property. Can't get through my head what that means? Relates of an appraisal? Appraisal can't be made more that 60 days before contribution, or can't refer to another appraisal made more than 60 days before. Can the appraisal be a year old when TP decides to donate?

[Zee]

Were these bound editions of Playboy?

Just kidding...everyone else is correct. This return would be a huge "red glag" without an appraisal a "qualified" expert.

[BOB W]

About 7 years ago I had a client do a "Bargain Sale" of a Yacht. $300,000 ended up being the donated value. I mailed in the return with ALL documentation. And 1-1/2 years later it was audited. I showed up at the audit with nothing. The auditor started asking me questions and each question I said "it is in the tax return". I started showing him each request. After 5 minutes he said "I will review the return and call you back if I have any more questions". Well he never called and my client got a "NO Change" letter about 2 weeks later.

So my moral to this story is> provide everything at the time of filing. Yes it will get audited but it will save prep and audit time later.

[JohnH]

Bob: Good advice and an interesting story. I generally shy away from sending anything other than the required forms, but this is an example of an unusual situation in which supporting documentation with the original return might be called for.

[Black Bart]

My take from reading that pub section:

Me again, another question. Reading the pub and instructions, the appraisal is not required to be sent in with the return? Just keep in files? They will ask for it, won't they?

Although you are required to get an appraisal, apparently you are not required to send the appraisal with the return (your books aren't listed in the exceptions to that rule). And you can keep it in your files and they will almost surely ask for it sooner or later, but the whole idea is to avoid an audit by presenting your evidence upfront. Why not send it?

On page 9 of Pub 561, it says a qualified appraisal is an appraisal document that: (3rd item down) relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property. Can't get through my head what that means? Relates of an appraisal?

While IRS could be clearer, I believe you're reading too much into the language. When they say the appraisal document "relates" to an appraisal, I think they simply mean that the "document" is the written findings of the physical appraisal that was taken. The document and the appraisal are basically one and the same; not two different things with one "referring" to the other.

Appraisal can't be made more that 60 days before contribution, or can't refer to another appraisal made more than 60 days before.

Can't be more than 60 days old -- they want a "fresh" valuation in case the market's dropped recently.

Can the appraisal be a year old when TP decides to donate?

No, per previous answer.

[taxcraft]

Defensive Behavior

When it comes to legal matters and audits I always do more than what is necessary. I want to make sure that coming to me about my work stays as a twinkle in his eye and never gets any further.