When Is Form 8283 Required?

When Is Form 8283 Required?

Deconstruction is a great way to get a sizable tax write-off, but it has to be accounted for correctly and according to the IRS’s rules to ensure that you receive that benefit. IRS Form 8283 is the documentation required to complete your tax deduction related to your deconstruction. Make sure to fill out this form if applicable to optimize your tax benefit, as the IRS does not give leeway for inaccurate filing.

When Is Form 8283 Necessary? 

If you’re claiming a tax deduction based on a non-cash charitable contribution of over $500, you’ll need to fill out Form 8283. Individuals, partnerships, and corporations alike are required to attach 8283 to their tax return in this situation.

For donations of property worth more than $500 but less than $5,000, the tax filer needs to fill out Section A of Form 8283. This applies to valuation of an item or a group of similar items.

However, if you’re deconstructing a house, you will almost certainly be donating more than $5,000 of building materials to charity. In the case of a donation of $5,000 or more, Section B of Form 8283 must be filled out. This is true even if the full contribution was spread across several donee organizations, in which case you’ll also have to file separate Section B forms for each.

Deducting more than $5,000 worth of building components and materials from a deconstruction project requires one extra step beyond Form 8283. In order to qualify for this tax deduction, the materials must be appraised by an IRS qualified appraiser. This appraisal should include a detailed scope of the deconstruction work and a comprehensive list of materials donated. The appraiser will provide a signed 8283 form. Make sure the appraisal package is exhaustive, as the IRS might try to question the donation value. Skipping the appraisal step will almost certainly result in your deduction being denied.

Green Donation Consultants has experience with thousands of deconstruction appraisals and are the choice of many CPAs, financial consultants, and tax attorneys for research and expert testimony on used building material donations. 

To speak with a qualified appraiser regarding tax benefits relating to donating your property, contact Green Donation Consultants at (800) 870-3965.