What this line means
A description of donated property with a claimed value exceeding $5,000 that requires a qualified appraisal. Section B applies to single items or groups of similar items (such as a collection of coins or stamps) valued at more than $5,000. Publicly traded securities are exempt from Section B regardless of value — they stay in Section A because their value is objectively determinable from market prices.
Does this apply to you?
- You donated a single item or group of similar items worth more than $5,000 to charity
- You donated real estate, artwork, antiques, or other high-value property
- You donated a vehicle, boat, or aircraft worth more than $5,000
- You need a qualified appraisal to support your deduction for property over the $5,000 threshold
Easy to overlook
The $5,000 threshold applies per item or group of similar items, not per charity If you donate a painting worth $6,000 and a rug worth $3,000 to the same museum, only the painting requires Section B (and a qualified appraisal). The rug goes in Section A. But if you donate 20 rugs collectively worth $8,000 to the same charity, the group exceeds $5,000 and requires Section B. Similar items are grouped for the threshold test. 1 IRS Publication 561 — Determining the Value of Donated Property
The qualified appraisal must be done no earlier than 60 days before the donation A qualified appraisal must be performed no earlier than 60 days before the donation and no later than the due date (including extensions) of the return on which the deduction is claimed. An old appraisal from years ago does not satisfy the requirement. The appraiser must also be a qualified appraiser as defined by the IRS — not just anyone with an opinion. 2 IRS Form 8283 instructions — Section B
Watch out for this
Skipping Section B and putting a $10,000 donation in Section A to avoid the appraisal requirement. The IRS matches Form 8283 entries against the $5,000 threshold. A noncash deduction over $5,000 (other than publicly traded securities) without Section B and an appraisal summary is automatically disallowed. The cost of an appraisal is far less than losing the entire deduction.
Footnotes
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IRS Publication 561, Determining the Value of Donated Property, $5,000 Threshold. https://www.irs.gov/pub/irs-pdf/p561.pdf ↩
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IRS Form 8283 Instructions, Section B, Qualified Appraisal. https://www.irs.gov/instructions/i8283 ↩