Documentation for Gift of Property (Building)

[Hoosier]

Client is gifting a commercial property (building) to a 501c3 non-profit organization. I advised the client to insist on receiving a receipt and an acknowledgement (or letter) on the organization's letterhead that describes the property gifted and a line that states 'no goods or services were provided in return for the gift'. I told the client to make sure the documentation is dated for the date the gift was made. I told the client that it is not necessary for the organization to place a value on the gift.

Is there anything else that the client should require from the organization in order to make the gift? Thanks.

[Burke]

Perhaps not from the recipient organization. But I would have the client provide to you a copy of the deed transfer (for date & ownership verification) and a current official appraisal of its FMV.

[Roland Slugg]

Is there anything else that the client should require from the organization in order to make the gift?

There sure is!

See the instructions for F-8283. The donor will need to complete Section B. He will also need to get an appraisal, and the appraiser needs to complete and sign Section B, Part III. Furthermore, the donee needs to complete and sign Section B, Part IV. A copy of the appraisal does not need to be attached to the donor's return unless the FMV is $500,000 or more.

I urge you to print and read the instructions for F-8283 very carefully. There are specific requirements regarding the appraiser as well as the time frame for getting the appraisal, and you should make your client aware of them. If this were me and one of my clients, I would give a copy of the F-8283 instructions to my client.