What are the IRS rules for donations over $5000?

For non-cash charitable donations where you claim a deduction exceeding $5,000, the IRS requires a qualified appraisal, a completed Section B of IRS Form 8283, and signatures from both a qualified appraiser and the receiving charity.

The $5,000 threshold applies per item or per group of similar items donated in the same tax year. If you donate multiple pieces of jewelry, furniture, or artwork and the total claimed deduction for that category exceeds $5,000, the over-$5,000 rules apply to the entire group. The appraisal must generally be completed no earlier than 60 days before the contribution date and no later than the due date of the return on which you first claim the deduction.

Key Requirements for Donations Over $5,000

Section B of Form 8283 must be completed for each item or group meeting the threshold. The required information includes:

• A description of the donated property and its condition
• The date acquired, how it was acquired, and its cost or other basis
• The date of contribution and the fair market value at that date
• The method used to determine fair market value

Two signatures are required on Section B: a qualified appraiser must sign the appraiser declaration (Part IV), and an authorized representative of the charity must sign Part V acknowledging receipt of the property. The charity's signature does not indicate agreement with the appraised value; it confirms receipt only. If your total deduction for all non-cash property exceeds $500,000, you must also attach the full qualified appraisal to your return, in addition to Form 8283.

Publicly traded securities are generally exempt from the appraisal requirement even above $5,000, though Form 8283 still applies. For most other property, including art, personal property, equipment, and business interests, a qualified appraisal from a credentialed appraiser is required. Legacy Donation Appraisers prepares USPAP-compliant, IRS-qualified appraisals and completes Part IV of Form 8283 for donations across all major asset categories. Start your appraisal to stay on the right side of IRS requirements.