There are many requirements to consider with the IRS & non-cash charitable donations.

Non-Cash charitable donations by a business entity can be a red flag to the IRS unless done right! The Internal Revenue Service follows specific requirements regarding the valuation of donated properties and the substantiation of charitable contribution deductions.

Recently, a client had several pieces of medical equipment they planned to donate to a non-profit organization. To properly account for the deduction on their corporate taxes, we provided a certified appraisal for Fair Market Value as of the donation date. The IRS has several requirements for corporate donations, one being it must be performed by a qualified appraiser. Also, the appraiser attesting to the value(s) is required to sign Tax Form 8283 if the donation value is $5k or more.

At ICS, we provide consulting and valuation services to clients that want to make a non-cash charitable contribution. We complete our valuation services within IRS guidelines, so the client has the peace of mind that Uncle Sam recognizes the donation as a legitimate tax deduction.