Form 8283 Charity non cash contributions similar items definition

[Roddog]

Client has furniture donations of 5,000 and clothing and household goods donation of 4,750. Would the two items be considered not similar items and can be reported separately and not require an appraisal and signature from the charity organization? Or the items would be considered similar group and would be required to be recorded in section b of form 8283, because the group is over 5k? The client moved and donated half of their household goods.

[BP.]

Would the two items be considered not similar items and can be reported separately . . . Or the items would be considered similar group

Pub 561 has a brief section on this and a list of examples of groups.

[Roddog]

So, the client came up with (one) value of $5,000.00 ? How convenient!
From the facts presented, it appears client has donated ~$10k of "household furnishings" or similar.

My first step would be to get a clear answer as to how that large potential donation dollar amount was determined. Is there an itemized inventory, with a "value" for each item, to include how its donation value was determined? Within the usual understandings of cost vs value of donation of used goods, that would put original costs of the donated items somewhere between $50k (20%) and $100k (10%).

Just curious: What "charitable organization" actually received these goods, and did you/client obtain a reference price list for the normal sale prices of donated items?

Also, remember that in a "best case scenario" you still are going to have to deal with the required "details" of page 1 of Form 8283 !!

FE

The client donated the items to charity organizations such as Goodwill, Vets, Hospice, Salvation Army etc.. He has a list of each item donated and value based on thrift shop. They gave away their entire household goods except a bedroom set from a 5 bedroom house.

The tax code is very vague about group of similar items, I’m just now trying to clarify if furniture, listed under household items, clothing listed separately and jewelry separately, if each of these items can be listed separately with donations values under 5k each. Example furniture 5k, clothing 2k, jewelry $700, total $7,700 without having an appraiser signed by charity.

[Roddog]

The client donated the items to charity organizations such as Goodwill, Vets, Hospice, Salvation Army etc.. He has a list of each item donated and value based on thrift shop. They gave away their entire household goods except a bedroom set from a 5 bedroom house.

The tax code is very vague about group of similar items, I’m just now trying to clarify if furniture, listed under household items, clothing listed separately and jewelry separately, if each of these items can be listed separately with donations values under 5k each. Example furniture 5k, clothing 2k, jewelry $700, total $7,700 without having an appraiser signed by charity.

I am aware of the statement in the code about similar items, however the statement doesn’t give a clear answer, what’s consider separate or a group for each category.

[Lion]

Also, the receipt signed by the charity for over $250 (?) and a signed appraisal by a qualified appraiser for over $5,000 are two different things. In fact, you might need multiple qualified appraisers for multiple types of items. Sorry that I can't help you with the research.

[Burke]

In one place it says if any individual item is valued at over $500, no appraisal needed. In another place, it qualifies "groups of similar items" as furniture, clothing, jewelry etc. that exceed $5K. I have listed clothing & household goods at amounts in excess of $500 many times, (but not over $5K) and never completed Part B of 8283. Jewelry is another matter. It does say it needs to be appraised. I can't imagine a donor giving jewelry to one of these organizations valued at $700. That can't be costume jewelry, so where did they come up with that amount? Do they have pictures, estimates from a jeweler, anything to document what the original cost was, etc?