How does the IRS treat similar items donated across multiple charities?
The IRS aggregates the value of similar items, such as all jewelry or all paintings, donated to different charities within the same tax year. If the combined value of a group of similar items exceeds $5,000, a qualified appraisal is required for the entire group, even if no single donation crossed the threshold on its own.
How does Form 1098-C affect vehicle donation deductions?
When a donated vehicle is sold by the charity without significant use or improvement, the charity issues Form 1098-C reporting the sales proceeds, and your deduction is typically limited to that amount rather than the appraised fair market value. A qualified appraisal may still be useful for documentation, but the Form 1098-C often controls the deductible amount for vehicles over $500.
What happens if my appraisal is dated more than 60 days before the donation?
The IRS will reject it as untimely, even if the appraisal is otherwise complete and accurate. The 60-day pre-donation window is a strict requirement, and an appraisal falling outside the allowable period cannot be used to substantiate the deduction.
What is the IRS Statement of Value, and do I need one?
For artwork valued over $50,000, donors may request an IRS Statement of Value as an alternative form of substantiation, which involves submitting a qualified appraisal, Form 8283 Section B, and a user fee to the IRS before filing. A qualified appraisal is still required as part of that process, and the IRS Art Advisory Panel reviews high-value art donations during audits. This option can provide additional protection but is not a replacement for obtaining a proper appraisal upfront.