IRS qualified appraisals for donated art (Form 8283)

A non-cash charitable contribution of art is a tax event. For deductions over $5,000, the return generally needs a qualified appraisal, prepared by a qualified appraiser, stating fair market value. IRS Publication 561, Form 8283 instructions, and Treasury Regulation 1.170A-17 are the rules. USPAP supplies the appraisal standards.

Timing

The appraisal must be dated no earlier than 60 days before the date of the contribution, and the donor must have it by the return due date, including extensions.

Form 8283 thresholds

• Above $5,000: Section B of Form 8283, with a qualified appraisal. Form 8283 is an appraisal summary, not the appraisal.
• At $20,000 or more for art: the signed appraisal is attached to the return.
• At $50,000 and above: the Art Advisory Panel may review the gift.

Comparables and independence

Fair market value is as of the donation date. The donee institution is a prohibited appraiser of its own gift. The fee cannot be a percentage of the claimed deduction.