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  • 1.  Gift In Kind - Appraisal 7 Months Later??

    Posted 02-23-2024 12:58 PM

    Hello experts! 

    We has a donor who donated a piano back in June 2023. We offered two options: 

    Option 1: If they wanted a tax break for this gift-in-kind donation, the piano had to be appraised to prove the value of the piano. We informed them that the university does not handle appraisals for donated items; that is the donor's responsibility.  

    Option 2: If there was no appraisal done and they did not need a tax receipt, we can provide a Gift In Kind Thank You Letter that will describe the piano but we cannot state it's value in the letter.

    The donor chose option 2 and we provided a Gift In Kind Letter. 

    Now, they have recently reached out and decided they would like to have the piano appraised for their taxes. 

    He can't correct?  We already provided a gift-in-kind letter and if he were to appraise it now, it would be dated this year so it wouldn't count for this year's taxes (if this was allowed). Is there a certain timeframe the donor has to get a item appraised? 

    Any help on this unique situation would be VERY helpful. 

    Thanks!!!!!

    Best,
    Gizel 



    ------------------------------
    Gizel Avina
    Claremont Graduate University
    gizel.avina@cgu.edu
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  • 2.  RE: Gift In Kind - Appraisal 7 Months Later??

    Posted 02-23-2024 01:04 PM
    The donor might still be able to do this. Appraisers are trained to value items as of a certain date.

    But this is between the donor and the IRS. You are not involved.

    But when you think about it, almost all property donations from 2023 will have an 8283 form signed by an appraiser in 2024.

    Nothing changes on your end. You will still sign the 8283 this year attesting to the fact the gift was received last year. You are NOT attesting to the value!

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Gift In Kind - Appraisal 7 Months Later??

    Posted 02-23-2024 01:13 PM

    Thanks for your quick response John!! This was very helpful!



    ------------------------------
    Gizel Avina
    Claremont Graduate University
    gizel.avina@cgu.edu
    ------------------------------

    Original Message


  • 4.  RE: Gift In Kind - Appraisal 7 Months Later??

    Posted 02-23-2024 01:24 PM
    I'm not sure that Option 1 should be offered. You ought to provide a GIK letter describing the piano but not valuing it, regardless of whether appraisals are performed. The donor needs to get an appraisal if they want to substantiate a tax deduction of $5k+ and file an 8283

    Whether the donor will be able to amend the return and get a deduction or not doesn't really matter for your responsibilities. You can sign the 8283 and list the date you got the piano. The rest is on the donor, their accountant, and the IRS. 

    In general though, so long as the GIK receipt was contemporaneous (which means by the date on which the return was filed for that year, or the due date of the return if the return was filed late), it is possible to go back and amend a return to take a tax deduction for that donation as long as it's within three years of the original return. 

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

    Schedule a 30-minute consultation now:




    Original Message


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