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Www irs gov e pay 19. Www irs gov e pay   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. Www irs gov e pay Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. Www irs gov e pay Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. Www irs gov e pay No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. Www irs gov e pay Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. Www irs gov e pay Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. Www irs gov e pay La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. Www irs gov e pay Tabla 19-1. Www irs gov e pay Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. Www irs gov e pay Consulte el texto para más detalles. Www irs gov e pay Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. Www irs gov e pay Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. Www irs gov e pay Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. Www irs gov e pay Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. Www irs gov e pay Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. Www irs gov e pay Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. Www irs gov e pay Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. Www irs gov e pay Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. Www irs gov e pay Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. Www irs gov e pay Un plan calificado proporcionado por un empleador. Www irs gov e pay Excepciones. Www irs gov e pay   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. Www irs gov e pay Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. Www irs gov e pay Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). Www irs gov e pay Plazo razonable. Www irs gov e pay   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. Www irs gov e pay   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. Www irs gov e pay Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. Www irs gov e pay   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. Www irs gov e pay Período académico. Www irs gov e pay   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. Www irs gov e pay En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. Www irs gov e pay Estudiante que reúne los requisitos. Www irs gov e pay   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. Www irs gov e pay Matriculado por lo menos a medio tiempo. Www irs gov e pay   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. Www irs gov e pay   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. Www irs gov e pay No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. Www irs gov e pay Pariente. Www irs gov e pay   No puede deducir intereses sobre un préstamo que obtenga de un pariente. Www irs gov e pay Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. Www irs gov e pay ); Sus descendientes en línea directa (hijos, nietos, etc. Www irs gov e pay ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. Www irs gov e pay Plan calificado proporcionado por un empleador. Www irs gov e pay   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. Www irs gov e pay Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. Www irs gov e pay Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. Www irs gov e pay Alojamiento y comida. Www irs gov e pay Libros, materiales y equipo. Www irs gov e pay Otros gastos necesarios (tales como los de transporte). Www irs gov e pay Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. Www irs gov e pay Institución de enseñanza superior que reúne los requisitos. Www irs gov e pay   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Www irs gov e pay Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Www irs gov e pay   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. Www irs gov e pay   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. Www irs gov e pay   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. Www irs gov e pay La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. Www irs gov e pay    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. Www irs gov e pay Ajustes tributarios a gastos de estudios calificados. Www irs gov e pay   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). Www irs gov e pay Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. Www irs gov e pay Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. Www irs gov e pay Costo originario del préstamo. Www irs gov e pay   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. Www irs gov e pay Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. Www irs gov e pay Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. Www irs gov e pay Intereses capitalizados. Www irs gov e pay    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. Www irs gov e pay Intereses sobre líneas de crédito rotativas. Www irs gov e pay   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. Www irs gov e pay Vea Gastos de Estudios Calificados , anteriormente. Www irs gov e pay Intereses sobre préstamos de estudios refinanciados. Www irs gov e pay   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. Www irs gov e pay Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. Www irs gov e pay Pagos de intereses voluntarios. Www irs gov e pay   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. Www irs gov e pay No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. Www irs gov e pay Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. Www irs gov e pay Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. Www irs gov e pay Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. Www irs gov e pay ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. Www irs gov e pay Nadie más reclama una exención por usted en su declaración de impuestos. Www irs gov e pay Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. Www irs gov e pay Usted pagó intereses sobre un préstamo de estudios calificado. Www irs gov e pay Intereses pagados por otros. Www irs gov e pay   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. Www irs gov e pay Vea el capítulo 4 de la Publicación 970, en inglés, para más información. Www irs gov e pay No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). Www irs gov e pay ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. Www irs gov e pay Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). Www irs gov e pay No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). Www irs gov e pay Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. Www irs gov e pay ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. Www irs gov e pay No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. Www irs gov e pay Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. Www irs gov e pay Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. Www irs gov e pay Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. Www irs gov e pay Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. Www irs gov e pay No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. Www irs gov e pay Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. Www irs gov e pay Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. Www irs gov e pay Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). Www irs gov e pay No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. Www irs gov e pay Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . Www irs gov e pay La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. Www irs gov e pay La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. Www irs gov e pay Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. Www irs gov e pay Puede escoger la opción que le proporcione una cantidad de impuesto menor. Www irs gov e pay Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. Www irs gov e pay ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. Www irs gov e pay Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. Www irs gov e pay Pagó los gastos de estudios de un estudiante que reúne los requisitos. Www irs gov e pay El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. Www irs gov e pay Los gastos de estudios calificados se definen bajo Gastos que Califican . Www irs gov e pay La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . Www irs gov e pay Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. Www irs gov e pay Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. Www irs gov e pay Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. Www irs gov e pay Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). Www irs gov e pay Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. Www irs gov e pay Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. Www irs gov e pay S. Www irs gov e pay Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. Www irs gov e pay Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. Www irs gov e pay No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. Www irs gov e pay Tabla 19-2. Www irs gov e pay Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. Www irs gov e pay Consulte el texto de este capítulo para más detalles. Www irs gov e pay Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. Www irs gov e pay ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. Www irs gov e pay ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. Www irs gov e pay ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. Www irs gov e pay Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. Www irs gov e pay La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. Www irs gov e pay Pagos hechos con fondos de un préstamo. Www irs gov e pay   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. Www irs gov e pay Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. Www irs gov e pay Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. Www irs gov e pay Estudiante que se da de baja de su(s) clase(s). Www irs gov e pay   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). Www irs gov e pay Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. Www irs gov e pay Institución de educación que reúne los requisitos. Www irs gov e pay   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Www irs gov e pay Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Www irs gov e pay La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. Www irs gov e pay   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. Www irs gov e pay Período académico. Www irs gov e pay   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. Www irs gov e pay Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. Www irs gov e pay Gastos relacionados. Www irs gov e pay   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. Www irs gov e pay Gastos pagados por adelantado. Www irs gov e pay   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. Www irs gov e pay Vea Período académico, anteriormente. Www irs gov e pay Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. Www irs gov e pay No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. Www irs gov e pay No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. Www irs gov e pay Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. Www irs gov e pay Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). Www irs gov e pay En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. Www irs gov e pay Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. Www irs gov e pay Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). Www irs gov e pay Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Www irs gov e pay Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. Www irs gov e pay Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. Www irs gov e pay Ajustes a los gastos de estudios calificados. Www irs gov e pay   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. Www irs gov e pay El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. Www irs gov e pay Ayuda económica para los estudios exenta de impuestos. Www irs gov e pay   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. Www irs gov e pay Vea Período académico, anteriormente. Www irs gov e pay   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. Www irs gov e pay   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. Www irs gov e pay Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. Www irs gov e pay La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Www irs gov e pay    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. Www irs gov e pay Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. Www irs gov e pay   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. Www irs gov e pay La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). Www irs gov e pay   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Www irs gov e pay Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. Www irs gov e pay Reembolsos. Www irs gov e pay   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. Www irs gov e pay Vea el capítulo 6 de la Publicación 970 para obtener más información. Www irs gov e pay Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Www irs gov e pay Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. Www irs gov e pay Reembolsos recibidos en 2013. Www irs gov e pay   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. Www irs gov e pay Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Www irs gov e pay   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Www irs gov e pay Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Www irs gov e pay   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. Www irs gov e pay Vea el capítulo 6 de la Publicación 970, en inglés, para más información. Www irs gov e pay Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. Www irs gov e pay   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). Www irs gov e pay Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. Www irs gov e pay Cantidades que no reducen los gastos de estudios calificados. Www irs gov e pay   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. Www irs gov e pay   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. Www irs gov e pay El uso de dinero no se restringe. Www irs gov e pay Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. Www irs gov e pay Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. Www irs gov e pay Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. Www irs gov e pay   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. Www irs gov e pay No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. Www irs gov e pay Cuotas íntegras o en conjunto. Www irs gov e pay   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. Www irs gov e pay Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. Www irs gov e pay La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Www irs gov e pay Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. Www irs gov e pay Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). Www irs gov e pay Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. Www irs gov e pay La Tabla 19-3 resume quién puede reclamar la deducción. Www irs gov e pay Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. Www irs gov e pay Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. Www irs gov e pay Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. Www irs gov e pay Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Www irs gov e pay Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. Www irs gov e pay Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. Www irs gov e pay Tabla 19-3. Www irs gov e pay Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. Www irs gov e pay Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. Www irs gov e pay SI su dependiente es un estudiante que reúne los requisitos y usted . Www irs gov e pay . Www irs gov e pay . Www irs gov e pay Y. Www irs gov e pay . Www irs gov e pay . Www irs gov e pay ENTONCES. Www irs gov e pay . Www irs gov e pay . Www irs gov e pay reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. Www irs gov e pay Su dependiente no puede tomar la deducción. Www irs gov e pay reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Www irs gov e pay no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Www irs gov e pay no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Www irs gov e pay Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. Www irs gov e pay Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. Www irs gov e pay No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. Www irs gov e pay Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). Www irs gov e pay Educador que reúne los requisitos. Www irs gov e pay   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. Www irs gov e pay Gastos calificados. Www irs gov e pay   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. Www irs gov e pay Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. Www irs gov e pay Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. Www irs gov e pay Un gasto no tiene que ser obligatorio para considerarse necesario. Www irs gov e pay   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. Www irs gov e pay   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. Www irs gov e pay S. Www irs gov e pay Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. Www irs gov e pay Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Www irs gov e pay Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. Www irs gov e pay Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. Www irs gov e pay Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. Www irs gov e pay Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. Www irs gov e pay Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. Www irs gov e pay Prev  Up  Next   Home   More Online Publications
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Www irs gov e pay Publication 561 - Main Contents Table of Contents What Is Fair Market Value (FMV)?Factors. Www irs gov e pay Stock. Www irs gov e pay Options. Www irs gov e pay Determining Fair Market Value Problems in Determining Fair Market Value Valuation of Various Kinds of PropertyHousehold Goods Used Clothing Jewelry and Gems Paintings, Antiques, and Other Objects of Art Collections Cars, Boats, and Aircraft Inventory Patents Stocks and Bonds Real Estate Interest in a Business Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Certain Life Insurance and Annuity Contracts Partial Interest in Property Not in Trust AppraisalsDeductions of More Than $5,000 Deductions of More Than $500,000 Qualified Appraisal Form 8283 Internal Revenue Service Review of Appraisals Penalty How To Get Tax HelpLow income tax clinics (LITCs). Www irs gov e pay What Is Fair Market Value (FMV)? To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution. Www irs gov e pay Fair market value. Www irs gov e pay   Fair market value (FMV) is the price that property would sell for on the open market. Www irs gov e pay It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. Www irs gov e pay If you put a restriction on the use of property you donate, the FMV must reflect that restriction. Www irs gov e pay Example 1. Www irs gov e pay If you give used clothing to the Salvation Army, the FMV would be the price that typical buyers actually pay for clothing of this age, condition, style, and use. Www irs gov e pay Usually, such items are worth far less than what you paid for them. Www irs gov e pay Example 2. Www irs gov e pay If you donate land and restrict its use to agricultural purposes, you must value the land at its value for agricultural purposes, even though it would have a higher FMV if it were not restricted. Www irs gov e pay Factors. Www irs gov e pay   In making and supporting the valuation of property, all factors affecting value are relevant and must be considered. Www irs gov e pay These include: The cost or selling price of the item, Sales of comparable properties, Replacement cost, and Opinions of experts. Www irs gov e pay   These factors are discussed later. Www irs gov e pay Also, see Table 1 for a summary of questions to ask as you consider each factor. Www irs gov e pay Date of contribution. Www irs gov e pay   Ordinarily, the date of a contribution is the date that the transfer of the property takes place. Www irs gov e pay Stock. Www irs gov e pay   If you deliver, without any conditions, a properly endorsed stock certificate to a qualified organization or to an agent of the organization, the date of the contribution is the date of delivery. Www irs gov e pay If the certificate is mailed and received through the regular mail, it is the date of mailing. Www irs gov e pay If you deliver the certificate to a bank or broker acting as your agent or to the issuing corporation or its agent, for transfer into the name of the organization, the date of the contribution is the date the stock is transferred on the books of the corporation. Www irs gov e pay Options. Www irs gov e pay   If you grant an option to a qualified organization to buy real property, you have not made a charitable contribution until the organization exercises the option. Www irs gov e pay The amount of the contribution is the FMV of the property on the date the option is exercised minus the exercise price. Www irs gov e pay Example. Www irs gov e pay You grant an option to a local university, which is a qualified organization, to buy real property. Www irs gov e pay Under the option, the university could buy the property at any time during a 2-year period for $40,000. Www irs gov e pay The FMV of the property on the date the option is granted is $50,000. Www irs gov e pay In the following tax year, the university exercises the option. Www irs gov e pay The FMV of the property on the date the option is exercised is $55,000. Www irs gov e pay Therefore, you have made a charitable contribution of $15,000 ($55,000, the FMV, minus $40,000, the exercise price) in the tax year the option is exercised. Www irs gov e pay Determining Fair Market Value Determining the value of donated property would be a simple matter if you could rely only on fixed formulas, rules, or methods. Www irs gov e pay Usually it is not that simple. Www irs gov e pay Using such formulas, etc. Www irs gov e pay , seldom results in an acceptable determination of FMV. Www irs gov e pay There is no single formula that always applies when determining the value of property. Www irs gov e pay This is not to say that a valuation is only guesswork. Www irs gov e pay You must consider all the facts and circumstances connected with the property, such as its desirability, use, and scarcity. Www irs gov e pay For example, donated furniture should not be evaluated at some fixed rate such as 15% of the cost of new replacement furniture. Www irs gov e pay When the furniture is contributed, it may be out of style or in poor condition, therefore having little or no market value. Www irs gov e pay On the other hand, it may be an antique, the value of which could not be determined by using any formula. Www irs gov e pay Cost or Selling Price of the Donated Property The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. Www irs gov e pay However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution. Www irs gov e pay The cost or selling price is a good indication of the property's value if: The purchase or sale took place close to the valuation date in an open market, The purchase or sale was at “arm's-length,” The buyer and seller knew all relevant facts, The buyer and seller did not have to act, and The market did not change between the date of purchase or sale and the valuation date. Www irs gov e pay Example. Www irs gov e pay Tom Morgan, who is not a dealer in gems, bought an assortment of gems for $5,000 from a promoter. Www irs gov e pay The promoter claimed that the price was “wholesale” even though he and other dealers made similar sales at similar prices to other persons who were not dealers. Www irs gov e pay The promoter said that if Tom kept the gems for more than 1 year and then gave them to charity, Tom could claim a charitable deduction of $15,000, which, according to the promoter, would be the value of the gems at the time of contribution. Www irs gov e pay Tom gave the gems to a qualified charity 13 months after buying them. Www irs gov e pay The selling price for these gems had not changed from the date of purchase to the date he donated them to charity. Www irs gov e pay The best evidence of FMV depends on actual transactions and not on some artificial estimate. Www irs gov e pay The $5,000 charged Tom and others is, therefore, the best evidence of the maximum FMV of the gems. Www irs gov e pay Terms of the purchase or sale. Www irs gov e pay   The terms of the purchase or sale should be considered in determining FMV if they influenced the price. Www irs gov e pay These terms include any restrictions, understandings, or covenants limiting the use or disposition of the property. Www irs gov e pay Rate of increase or decrease in value. Www irs gov e pay   Unless you can show that there were unusual circumstances, it is assumed that the increase or decrease in the value of your donated property from your cost has been at a reasonable rate. Www irs gov e pay For time adjustments, an appraiser may consider published price indexes for information on general price trends, building costs, commodity costs, securities, and works of art sold at auction in arm's-length sales. Www irs gov e pay Example. Www irs gov e pay Bill Brown bought a painting for $10,000. Www irs gov e pay Thirteen months later he gave it to an art museum, claiming a charitable deduction of $15,000 on his tax return. Www irs gov e pay The appraisal of the painting should include information showing that there were unusual circumstances that justify a 50% increase in value for the 13 months Bill held the property. Www irs gov e pay Arm's-length offer. Www irs gov e pay   An arm's-length offer to buy the property close to the valuation date may help to prove its value if the person making the offer was willing and able to complete the transaction. Www irs gov e pay To rely on an offer, you should be able to show proof of the offer and the specific amount to be paid. Www irs gov e pay Offers to buy property other than the donated item will help to determine value if the other property is reasonably similar to the donated property. Www irs gov e pay Sales of Comparable Properties The sales prices of properties similar to the donated property are often important in determining the FMV. Www irs gov e pay The weight to be given to each sale depends on the following. Www irs gov e pay The degree of similarity between the property sold and the donated property. Www irs gov e pay The time of the sale—whether it was close to the valuation date. Www irs gov e pay The circumstances of the sale—whether it was at arm's-length with a knowledgeable buyer and seller, with neither having to act. Www irs gov e pay The conditions of the market in which the sale was made—whether unusually inflated or deflated. Www irs gov e pay The comparable sales method of valuing real estate is explained later under Valuation of Various Kinds of Property. Www irs gov e pay Example 1. Www irs gov e pay Mary Black, who is not a book dealer, paid a promoter $10,000 for 500 copies of a single edition of a modern translation of the Bible. Www irs gov e pay The promoter had claimed that the price was considerably less than the “retail” price, and gave her a statement that the books had a total retail value of $30,000. Www irs gov e pay The promoter advised her that if she kept the Bibles for more than 1 year and then gave them to a qualified organization, she could claim a charitable deduction for the “retail” price of $30,000. Www irs gov e pay Thirteen months later she gave all the Bibles to a church that she selected from a list provided by the promoter. Www irs gov e pay At the time of her donation, wholesale dealers were selling similar quantities of Bibles to the general public for $10,000. Www irs gov e pay The FMV of the Bibles is $10,000, the price at which similar quantities of Bibles were being sold to others at the time of the contribution. Www irs gov e pay Example 2. Www irs gov e pay The facts are the same as in Example 1, except that the promoter gave Mary Black a second option. Www irs gov e pay The promoter said that if Mary wanted a charitable deduction within 1 year of the purchase, she could buy the 500 Bibles at the “retail” price of $30,000, paying only $10,000 in cash and giving a promissory note for the remaining $20,000. Www irs gov e pay The principal and interest on the note would not be due for 12 years. Www irs gov e pay According to the promoter, Mary could then, within 1 year of the purchase, give the Bibles to a qualified organization and claim the full $30,000 retail price as a charitable contribution. Www irs gov e pay She purchased the Bibles under the second option and, 3 months later, gave them to a church, which will use the books for church purposes. Www irs gov e pay At the time of the gift, the promoter was selling similar lots of Bibles for either $10,000 or $30,000. Www irs gov e pay The difference between the two prices was solely at the discretion of the buyer. Www irs gov e pay The promoter was a willing seller for $10,000. Www irs gov e pay Therefore, the value of Mary's contribution of the Bibles is $10,000, the amount at which similar lots of Bibles could be purchased from the promoter by members of the general public. Www irs gov e pay Replacement Cost The cost of buying, building, or manufacturing property similar to the donated item should be considered in determining FMV. Www irs gov e pay However, there must be a reasonable relationship between the replacement cost and the FMV. Www irs gov e pay The replacement cost is the amount it would cost to replace the donated item on the valuation date. Www irs gov e pay Often there is no relationship between the replacement cost and the FMV. Www irs gov e pay If the supply of the donated property is more or less than the demand for it, the replacement cost becomes less important. Www irs gov e pay To determine the replacement cost of the donated property, find the “estimated replacement cost new. Www irs gov e pay ” Then subtract from this figure an amount for depreciation due to the physical condition and obsolescence of the donated property. Www irs gov e pay You should be able to show the relationship between the depreciated replacement cost and the FMV, as well as how you arrived at the “estimated replacement cost new. Www irs gov e pay ” Opinions of Experts Generally, the weight given to an expert's opinion on matters such as the authenticity of a coin or a work of art, or the most profitable and best use of a piece of real estate, depends on the knowledge and competence of the expert and the thoroughness with which the opinion is supported by experience and facts. Www irs gov e pay For an expert's opinion to deserve much weight, the facts must support the opinion. Www irs gov e pay For additional information, see Appraisals, later. Www irs gov e pay Table 1. Www irs gov e pay Factors That Affect FMV IF the factor you are considering is. Www irs gov e pay . Www irs gov e pay . Www irs gov e pay THEN you should ask these questions. Www irs gov e pay . Www irs gov e pay . Www irs gov e pay     cost or selling price Was the purchase or sale of the property reasonably close to the date of contribution? Was any increase or decrease in value, as compared to your cost, at a reasonable rate? Do the terms of purchase or sale limit what can be done with the property? Was there an arm's-length offer to buy the property close to the valuation date?     sales of comparable properties How similar is the property sold to the property donated? How close is the date of sale to the valuation date? Was the sale at arm's-length? What was the condition of the market at the time of sale?     replacement cost What would it cost to replace the donated property? Is there a reasonable relationship between replacement cost and FMV? Is the supply of the donated property more or less than the demand for it?     opinions of experts Is the expert knowledgeable and competent? Is the opinion thorough and supported by facts and experience? Problems in Determining Fair Market Value There are a number of problems in determining the FMV of donated property. Www irs gov e pay Unusual Market Conditions The sale price of the property itself in an arm's-length transaction in an open market is often the best evidence of its value. Www irs gov e pay When you rely on sales of comparable property, the sales must have been made in an open market. Www irs gov e pay If those sales were made in a market that was artificially supported or stimulated so as not to be truly representative, the prices at which the sales were made will not indicate the FMV. Www irs gov e pay For example, liquidation sale prices usually do not indicate the FMV. Www irs gov e pay Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV. Www irs gov e pay Selection of Comparable Sales Using sales of comparable property is an important method for determining the FMV of donated property. Www irs gov e pay However, the amount of weight given to a sale depends on the degree of similarity between the comparable and the donated properties. Www irs gov e pay The degree of similarity must be close enough so that this selling price would have been given consideration by reasonably well-informed buyers or sellers of the property. Www irs gov e pay Example. Www irs gov e pay You give a rare, old book to your former college. Www irs gov e pay The book is a third edition and is in poor condition because of a missing back cover. Www irs gov e pay You discover that there was a sale for $300, near the valuation date, of a first edition of the book that was in good condition. Www irs gov e pay Although the contents are the same, the books are not at all similar because of the different editions and their physical condition. Www irs gov e pay Little consideration would be given to the selling price of the $300 property by knowledgeable buyers or sellers. Www irs gov e pay Future Events You may not consider unexpected events happening after your donation of property in making the valuation. Www irs gov e pay You may consider only the facts known at the time of the gift, and those that could be reasonably expected at the time of the gift. Www irs gov e pay Example. Www irs gov e pay You give farmland to a qualified charity. Www irs gov e pay The transfer provides that your mother will have the right to all income and full use of the property for her life. Www irs gov e pay Even though your mother dies 1 week after the transfer, the value of the property on the date it is given is its present value, subject to the life interest as estimated from actuarial tables. Www irs gov e pay You may not take a higher deduction because the charity received full use and possession of the land only 1 week after the transfer. Www irs gov e pay Using Past Events to Predict the Future A common error is to rely too much on past events that do not fairly reflect the probable future earnings and FMV. Www irs gov e pay Example. Www irs gov e pay You give all your rights in a successful patent to your favorite charity. Www irs gov e pay Your records show that before the valuation date there were three stages in the patent's history of earnings. Www irs gov e pay First, there was rapid growth in earnings when the invention was introduced. Www irs gov e pay Then, there was a period of high earnings when the invention was being exploited. Www irs gov e pay Finally, there was a decline in earnings when competing inventions were introduced. Www irs gov e pay The entire history of earnings may be relevant in estimating the future earnings. Www irs gov e pay However, the appraiser must not rely too much on the stage of rapid growth in earnings, or of high earnings. Www irs gov e pay The market conditions at those times do not represent the condition of the market at the valuation date. Www irs gov e pay What is most significant is the trend of decline in earnings up to the valuation date. Www irs gov e pay For more information about donations of patents, see Patents, later. Www irs gov e pay Valuation of Various Kinds of Property This section contains information on determining the FMV of ordinary kinds of donated property. Www irs gov e pay For information on appraisals, see Appraisals, later. Www irs gov e pay Household Goods The FMV of used household goods, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Www irs gov e pay Such used property may have little or no market value because of its worn condition. Www irs gov e pay It may be out of style or no longer useful. Www irs gov e pay You cannot take a deduction for household goods donated after August 17, 2006, unless they are in good used condition or better. Www irs gov e pay A household good that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. Www irs gov e pay See Deduction over $500 for certain clothing or household items, later. Www irs gov e pay If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art. Www irs gov e pay Used Clothing Used clothing and other personal items are usually worth far less than the price you paid for them. Www irs gov e pay Valuation of items of clothing does not lend itself to fixed formulas or methods. Www irs gov e pay The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value. Www irs gov e pay You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. Www irs gov e pay An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. Www irs gov e pay See Deduction over $500 for certain clothing or household items, later. Www irs gov e pay For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return. Www irs gov e pay Jewelry and Gems Jewelry and gems are of such a specialized nature that it is almost always necessary to get an appraisal by a specialized jewelry appraiser. Www irs gov e pay The appraisal should describe, among other things, the style of the jewelry, the cut and setting of the gem, and whether it is now in fashion. Www irs gov e pay If not in fashion, the possibility of having the property redesigned, recut, or reset should be reported in the appraisal. Www irs gov e pay The stone's coloring, weight, cut, brilliance, and flaws should be reported and analyzed. Www irs gov e pay Sentimental personal value has no effect on FMV. Www irs gov e pay But if the jewelry was owned by a famous person, its value might increase. Www irs gov e pay Paintings, Antiques, and Other Objects of Art Your deduction for contributions of paintings, antiques, and other objects of art, should be supported by a written appraisal from a qualified and reputable source, unless the deduction is $5,000 or less. Www irs gov e pay Examples of information that should be included in appraisals of art objects—paintings in particular—are found later under Qualified Appraisal. Www irs gov e pay Art valued at $20,000 or more. Www irs gov e pay   If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the signed appraisal to your return. Www irs gov e pay For individual objects valued at $20,000 or more, a photograph of a size and quality fully showing the object, preferably an 8 x 10 inch color photograph or a color transparency no smaller than 4 x 5 inches, must be provided upon request. Www irs gov e pay Art valued at $50,000 or more. Www irs gov e pay   If you donate an item of art that has been appraised at $50,000 or more, you can request a Statement of Value for that item from the IRS. Www irs gov e pay You must request the statement before filing the tax return that reports the donation. Www irs gov e pay Your request must include the following. Www irs gov e pay A copy of a qualified appraisal of the item. Www irs gov e pay See Qualified Appraisal, later. Www irs gov e pay A $2,500 check or money order payable to the Internal Revenue Service for the user fee that applies to your request regarding one, two, or three items of art. Www irs gov e pay Add $250 for each item in excess of three. Www irs gov e pay A completed Form 8283, Section B. Www irs gov e pay The location of the IRS territory that has examination responsibility for your return. Www irs gov e pay If your request lacks essential information, you will be notified and given 30 days to provide the missing information. Www irs gov e pay   Send your request to: Internal Revenue Service Attention: Art Appraisal (C:AP:ART) P. Www irs gov e pay O. Www irs gov e pay Box 27720 McPherson Station Washington, DC 20038 Refunds. Www irs gov e pay   You can withdraw your request for a Statement of Value at any time before it is issued. Www irs gov e pay However, the IRS will not refund the user fee if you do. Www irs gov e pay   If the IRS declines to issue a Statement of Value in the interest of efficient tax administration, the IRS will refund the user fee. Www irs gov e pay Authenticity. Www irs gov e pay   The authenticity of the donated art must be determined by the appraiser. Www irs gov e pay Physical condition. Www irs gov e pay   Important items in the valuation of antiques and art are physical condition and extent of restoration. Www irs gov e pay These have a significant effect on the value and must be fully reported in an appraisal. Www irs gov e pay An antique in damaged condition, or lacking the “original brasses,” may be worth much less than a similar piece in excellent condition. Www irs gov e pay Art appraisers. Www irs gov e pay   More weight will usually be given to an appraisal prepared by an individual specializing in the kind and price range of the art being appraised. Www irs gov e pay Certain art dealers or appraisers specialize, for example, in old masters, modern art, bronze sculpture, etc. Www irs gov e pay Their opinions on the authenticity and desirability of such art would usually be given more weight than the opinions of more generalized art dealers or appraisers. Www irs gov e pay They can report more recent comparable sales to support their opinion. Www irs gov e pay   To identify and locate experts on unique, specialized items or collections, you may wish to use the current Official Museum Directory of the American Association of Museums. Www irs gov e pay It lists museums both by state and by category. Www irs gov e pay   To help you locate a qualified appraiser for your donation, you may wish to ask an art historian at a nearby college or the director or curator of a local museum. Www irs gov e pay The Yellow Pages often list specialized art and antique dealers, auctioneers, and art appraisers. Www irs gov e pay You may be able to find a qualified appraiser on the Internet. Www irs gov e pay You may also contact associations of dealers for guidance. Www irs gov e pay Collections Since many kinds of hobby collections may be the subject of a charitable donation, it is not possible to discuss all of the possible collectibles in this publication. Www irs gov e pay Most common are rare books, autographs, sports memorabilia, dolls, manuscripts, stamps, coins, guns, phonograph records, and natural history items. Www irs gov e pay Many of the elements of valuation that apply to paintings and other objects of art, discussed earlier, also apply to miscellaneous collections. Www irs gov e pay Reference material. Www irs gov e pay   Publications available to help you determine the value of many kinds of collections include catalogs, dealers' price lists, and specialized hobby periodicals. Www irs gov e pay When using one of these price guides, you must use the current edition at the date of contribution. Www irs gov e pay However, these sources are not always reliable indicators of FMV and should be supported by other evidence. Www irs gov e pay   For example, a dealer may sell an item for much less than is shown on a price list, particularly after the item has remained unsold for a long time. Www irs gov e pay The price an item sold for in an auction may have been the result of a rigged sale or a mere bidding duel. Www irs gov e pay The appraiser must analyze the reference material, and recognize and make adjustments for misleading entries. Www irs gov e pay If you are donating a valuable collection, you should get an appraisal. Www irs gov e pay If your donation appears to be of little value, you may be able to make a satisfactory valuation using reference materials available at a state, city, college, or museum library. Www irs gov e pay Stamp collections. Www irs gov e pay   Most libraries have catalogs or other books that report the publisher's estimate of values. Www irs gov e pay Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. Www irs gov e pay Stamp dealers generally know the value of their merchandise and are able to prepare satisfactory appraisals of valuable collections. Www irs gov e pay Coin collections. Www irs gov e pay   Many catalogs and other reference materials show the writer's or publisher's opinion of the value of coins on or near the date of the publication. Www irs gov e pay Like many other collectors' items, the value of a coin depends on the demand for it, its age, and its rarity. Www irs gov e pay Another important factor is the coin's condition. Www irs gov e pay For example, there is a great difference in the value of a coin that is in mint condition and a similar coin that is only in good condition. Www irs gov e pay   Catalogs usually establish a category for coins, based on their physical condition—mint or uncirculated, extremely fine, very fine, fine, very good, good, fair, or poor—with a different valuation for each category. Www irs gov e pay Books. Www irs gov e pay   The value of books is usually determined by selecting comparable sales and adjusting the prices according to the differences between the comparable sales and the item being evaluated. Www irs gov e pay This is difficult to do and, except for a collection of little value, should be done by a specialized appraiser. Www irs gov e pay Within the general category of literary property, there are dealers who specialize in certain areas, such as Americana, foreign imports, Bibles, and scientific books. Www irs gov e pay Modest value of collection. Www irs gov e pay   If the collection you are donating is of modest value, not requiring a written appraisal, the following information may help you in determining the FMV. Www irs gov e pay   A book that is very old, or very rare, is not necessarily valuable. Www irs gov e pay There are many books that are very old or rare, but that have little or no market value. Www irs gov e pay Condition of book. Www irs gov e pay   The condition of a book may have a great influence on its value. Www irs gov e pay Collectors are interested in items that are in fine, or at least good, condition. Www irs gov e pay When a book has a missing page, a loose binding, tears, stains, or is otherwise in poor condition, its value is greatly lowered. Www irs gov e pay Other factors. Www irs gov e pay   Some other factors in the valuation of a book are the kind of binding (leather, cloth, paper), page edges, and illustrations (drawings and photographs). Www irs gov e pay Collectors usually want first editions of books. Www irs gov e pay However, because of changes or additions, other editions are sometimes worth as much as, or more than, the first edition. Www irs gov e pay Manuscripts, autographs, diaries, and similar items. Www irs gov e pay   When these items are handwritten, or at least signed by famous people, they are often in demand and are valuable. Www irs gov e pay The writings of unknowns also may be of value if they are of unusual historical or literary importance. Www irs gov e pay Determining the value of such material is difficult. Www irs gov e pay For example, there may be a great difference in value between two diaries that were kept by a famous person—one kept during childhood and the other during a later period in his or her life. Www irs gov e pay The appraiser determines a value in these cases by applying knowledge and judgment to such factors as comparable sales and conditions. Www irs gov e pay Signatures. Www irs gov e pay   Signatures, or sets of signatures, that were cut from letters or other papers usually have little or no value. Www irs gov e pay But complete sets of the signatures of U. Www irs gov e pay S. Www irs gov e pay presidents are in demand. Www irs gov e pay Cars, Boats, and Aircraft If you donate a car, a boat, or an aircraft to a charitable organization, its FMV must be determined. Www irs gov e pay Certain commercial firms and trade organizations publish monthly or seasonal guides for different regions of the country, containing complete dealer sale prices or dealer average prices for recent model years. Www irs gov e pay Prices are reported for each make, model, and year. Www irs gov e pay These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Www irs gov e pay The prices are not “official,” and these publications are not considered an appraisal of any specific donated property. Www irs gov e pay But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Www irs gov e pay These publications are sometimes available from public libraries or at a bank, credit union, or finance company. Www irs gov e pay You can also find pricing information about used cars on the Internet. Www irs gov e pay An acceptable measure of the FMV of a donated car, boat, or airplane is an amount not in excess of the price listed in a used vehicle pricing guide for a private party sale, not the dealer retail value, of a similar vehicle. Www irs gov e pay However, the FMV may be less than that amount if the vehicle has engine trouble, body damage, high mileage, or any type of excessive wear. Www irs gov e pay The FMV of a donated vehicle is the same as the price listed in a used vehicle pricing guide for a private party sale only if the guide lists a sales price for a vehicle that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated vehicle. Www irs gov e pay Example. Www irs gov e pay You donate a used car in poor condition to a local high school for use by students studying car repair. Www irs gov e pay A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Www irs gov e pay However, the guide shows the price for a private party sale of the car is only $750. Www irs gov e pay The FMV of the car is considered to be no more than $750. Www irs gov e pay Boats. Www irs gov e pay   Except for inexpensive small boats, the valuation of boats should be based on an appraisal by a marine surveyor because the physical condition is so critical to the value. Www irs gov e pay More information. Www irs gov e pay   Your deduction for a donated car, boat, or airplane generally is limited to the gross proceeds from its sale by the qualified organization. Www irs gov e pay This rule applies if the claimed value of the donated vehicle is more than $500. Www irs gov e pay In certain cases, you can deduct the vehicle's FMV. Www irs gov e pay For details, see Publication 526. Www irs gov e pay Inventory If you donate any inventory item to a charitable organization, the amount of your deductible contribution generally is the FMV of the item, minus any gain you would have realized if you had sold the item at its FMV on the date of the gift. Www irs gov e pay For more information, see Publication 526. Www irs gov e pay Patents To determine the FMV of a patent, you must take into account, among other factors: Whether the patented technology has been made obsolete by other technology; Any restrictions on the donee's use of, or ability to transfer, the patented technology; and The length of time remaining before the patent expires. Www irs gov e pay However, your deduction for a donation of a patent or other intellectual property is its FMV, minus any gain you would have realized if you had sold the property at its FMV on the date of the gift. Www irs gov e pay Generally, this means your deduction is the lesser of the property's FMV or its basis. Www irs gov e pay For details, see Publication 526. Www irs gov e pay Stocks and Bonds The value of stocks and bonds is the FMV of a share or bond on the valuation date. Www irs gov e pay See Date of contribution, earlier, under What Is Fair Market Value (FMV). Www irs gov e pay Selling prices on valuation date. Www irs gov e pay   If there is an active market for the contributed stocks or bonds on a stock exchange, in an over-the-counter market, or elsewhere, the FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. Www irs gov e pay For example, if the highest selling price for a share was $11, and the lowest $9, the average price is $10. Www irs gov e pay You get the average price by adding $11 and $9 and dividing the sum by 2. Www irs gov e pay No sales on valuation date. Www irs gov e pay   If there were no sales on the valuation date, but there were sales within a reasonable period before and after the valuation date, you determine FMV by taking the average price between the highest and lowest sales prices on the nearest date before and on the nearest date after the valuation date. Www irs gov e pay Then you weight these averages in inverse order by the respective number of trading days between the selling dates and the valuation date. Www irs gov e pay Example. Www irs gov e pay   On the day you gave stock to a qualified organization, there were no sales of the stock. Www irs gov e pay Sales of the stock nearest the valuation date took place two trading days before the valuation date at an average selling price of $10 and three trading days after the valuation date at an average selling price of $15. Www irs gov e pay The FMV on the valuation date was $12, figured as follows: [(3 x $10) + (2 x $15)] ÷ 5 = $12 Listings on more than one stock exchange. Www irs gov e pay   Stocks or bonds listed on more than one stock exchange are valued based on the prices of the exchange on which they are principally dealt. Www irs gov e pay This applies if these prices are published in a generally available listing or publication of general circulation. Www irs gov e pay If this is not applicable, and the stocks or bonds are reported on a composite listing of combined exchanges in a publication of general circulation, use the composite list. Www irs gov e pay See also Unavailable prices or closely held corporation, later. Www irs gov e pay Bid and asked prices on valuation date. Www irs gov e pay   If there were no sales within a reasonable period before and after the valuation date, the FMV is the average price between the bona fide bid and asked prices on the valuation date. Www irs gov e pay Example. Www irs gov e pay Although there were no sales of Blue Corporation stock on the valuation date, bona fide bid and asked prices were available on that date of $14 and $16, respectively. Www irs gov e pay The FMV is $15, the average price between the bid and asked prices. Www irs gov e pay No prices on valuation date. Www irs gov e pay   If there were no prices available on the valuation date, you determine FMV by taking the average prices between the bona fide bid and asked prices on the closest trading date before and after the valuation date. Www irs gov e pay Both dates must be within a reasonable period. Www irs gov e pay Then you weight these averages in inverse order by the respective number of trading days between the bid and asked dates and the valuation date. Www irs gov e pay Example. Www irs gov e pay On the day you gave stock to a qualified organization, no prices were available. Www irs gov e pay Bona fide bid and asked prices 3 days before the valuation date were $10 and 2 days after the valuation date were $15. Www irs gov e pay The FMV on the valuation date is $13, figured as follows: [(2 x $10) + (3 x $15)] ÷ 5 = $13 Prices only before or after valuation date, but not both. Www irs gov e pay   If no selling prices or bona fide bid and asked prices are available on a date within a reasonable period before the valuation date, but are available on a date within a reasonable period after the valuation date, or vice versa, then the average price between the highest and lowest of such available prices may be treated as the value. Www irs gov e pay Large blocks of stock. Www irs gov e pay   When a large block of stock is put on the market, it may lower the selling price of the stock if the supply is greater than the demand. Www irs gov e pay On the other hand, market forces may exist that will afford higher prices for large blocks of stock. Www irs gov e pay Because of the many factors to be considered, determining the value of large blocks of stock usually requires the help of experts specializing in underwriting large quantities of securities, or in trading in the securities of the industry of which the particular company is a part. Www irs gov e pay Unavailable prices or closely held corporation. Www irs gov e pay   If selling prices or bid and asked prices are not available, or if securities of a closely held corporation are involved, determine the FMV by considering the following factors. Www irs gov e pay For bonds, the soundness of the security, the interest yield, the date of maturity, and other relevant factors. Www irs gov e pay For shares of stock, the company's net worth, prospective earning power and dividend-paying capacity, and other relevant factors. Www irs gov e pay Other factors. Www irs gov e pay   Other relevant factors include: The nature and history of the business, especially its recent history, The goodwill of the business, The economic outlook in the particular industry, The company's position in the industry, its competitors, and its management, and The value of securities of corporations engaged in the same or similar business. Www irs gov e pay For preferred stock, the most important factors are its yield, dividend coverage, and protection of its liquidation preference. Www irs gov e pay   You should keep complete financial and other information on which the valuation is based. Www irs gov e pay This includes copies of reports of examinations of the company made by accountants, engineers, or any technical experts on or close to the valuation date. Www irs gov e pay Restricted securities. Www irs gov e pay   Some classes of stock cannot be traded publicly because of restrictions imposed by the Securities and Exchange Commission, or by the corporate charter or a trust agreement. Www irs gov e pay These restricted securities usually trade at a discount in relation to freely traded securities. Www irs gov e pay   To arrive at the FMV of restricted securities, factors that you must consider include the resale provisions found in the restriction agreements, the relative negotiating strengths of the buyer and seller, and the market experience of freely traded securities of the same class as the restricted securities. Www irs gov e pay Real Estate Because each piece of real estate is unique and its valuation is complicated, a detailed appraisal by a professional appraiser is necessary. Www irs gov e pay The appraiser must be thoroughly trained in the application of appraisal principles and theory. Www irs gov e pay In some instances the opinions of equally qualified appraisers may carry unequal weight, such as when one appraiser has a better knowledge of local conditions. Www irs gov e pay The appraisal report must contain a complete description of the property, such as street address, legal description, and lot and block number, as well as physical features, condition, and dimensions. Www irs gov e pay The use to which the property is put, zoning and permitted uses, and its potential use for other higher and better uses are also relevant. Www irs gov e pay In general, there are three main approaches to the valuation of real estate. Www irs gov e pay An appraisal may require the combined use of two or three methods rather than one method only. Www irs gov e pay 1. Www irs gov e pay Comparable Sales The comparable sales method compares the donated property with several similar properties that have been sold. Www irs gov e pay The selling prices, after adjustments for differences in date of sale, size, condition, and location, would then indicate the estimated FMV of the donated property. Www irs gov e pay If the comparable sales method is used to determine the value of unimproved real property (land without significant buildings, structures, or any other improvements that add to its value), the appraiser should consider the following factors when comparing the potential comparable property and the donated property: Location, size, and zoning or use restrictions, Accessibility and road frontage, and available utilities and water rights, Riparian rights (right of access to and use of the water by owners of land on the bank of a river) and existing easements, rights-of-way, leases, etc. Www irs gov e pay , Soil characteristics, vegetative cover, and status of mineral rights, and Other factors affecting value. Www irs gov e pay For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor's appraised FMV. Www irs gov e pay The comparable selling prices must be adjusted to account for differences between the sale property and the donated property. Www irs gov e pay Because differences of opinion may arise between appraisers as to the degree of comparability and the amount of the adjustment considered necessary for comparison purposes, an appraiser should document each item of adjustment. Www irs gov e pay Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property. Www irs gov e pay 2. Www irs gov e pay Capitalization of Income This method capitalizes the net income from the property at a rate that represents a fair return on the particular investment at the particular time, considering the risks involved. Www irs gov e pay The key elements are the determination of the income to be capitalized and the rate of capitalization. Www irs gov e pay 3. Www irs gov e pay Replacement Cost New or Reproduction Cost Minus Observed Depreciation This method, used alone, usually does not result in a determination of FMV. Www irs gov e pay Instead, it generally tends to set the upper limit of value, particularly in periods of rising costs, because it is reasonable to assume that an informed buyer will not pay more for the real estate than it would cost to reproduce a similar property. Www irs gov e pay Of course, this reasoning does not apply if a similar property cannot be created because of location, unusual construction, or some other reason. Www irs gov e pay Generally, this method serves to support the value determined from other methods. Www irs gov e pay When the replacement cost method is applied to improved realty, the land and improvements are valued separately. Www irs gov e pay The replacement cost of a building is figured by considering the materials, the quality of workmanship, and the number of square feet or cubic feet in the building. Www irs gov e pay This cost represents the total cost of labor and material, overhead, and profit. Www irs gov e pay After the replacement cost has been figured, consideration must be given to the following factors: Physical deterioration—the wear and tear on the building itself, Functional obsolescence—usually in older buildings with, for example, inadequate lighting, plumbing, or heating, small rooms, or a poor floor plan, and Economic obsolescence—outside forces causing the whole area to become less desirable. Www irs gov e pay Interest in a Business The FMV of any interest in a business, whether a sole proprietorship or a partnership, is the amount that a willing buyer would pay for the interest to a willing seller after consideration of all relevant factors. Www irs gov e pay The relevant factors to be considered in valuing the business are: The FMV of the assets of the business, The demonstrated earnings capacity of the business, based on a review of past and current earnings, and The other factors used in evaluating corporate stock, if they apply. Www irs gov e pay The value of the goodwill of the business should also be taken into consideration. Www irs gov e pay You should keep complete financial and other information on which you base the valuation. Www irs gov e pay This includes copies of reports of examinations of the business made by accountants, engineers, or any technical experts on or close to the valuation date. Www irs gov e pay Annuities, Interests for Life or Terms of Years, Remainders, and Reversions The value of these kinds of property is their present value, except in the case of annuities under contracts issued by companies regularly engaged in their sale. Www irs gov e pay The valuation of these commercial annuity contracts and of insurance policies is discussed later under Certain Life Insurance and Annuity Contracts. Www irs gov e pay To determine present value, you must know the applicable interest rate and use actuarial tables. Www irs gov e pay Interest rate. Www irs gov e pay   The applicable interest rate varies. Www irs gov e pay It is announced monthly in a news release and published in the Internal Revenue Bulletin as a Revenue Ruling. Www irs gov e pay The interest rate to use is under the heading “Rate Under Section 7520” for a given month and year. Www irs gov e pay You can call the IRS office at 1-800-829-1040 to obtain this rate. Www irs gov e pay Actuarial tables. Www irs gov e pay   You need to refer to actuarial tables to determine a qualified interest in the form of an annuity, any interest for life or a term of years, or any remainder interest to a charitable organization. Www irs gov e pay   Use the valuation tables set forth in IRS Publications 1457, Actuarial Values (Book Aleph), and 1458, Actuarial Values (Book Beth). Www irs gov e pay Both of these publications provide tables containing actuarial factors to be used in determining the present value of an annuity, an interest for life or for a term of years, or a remainder or reversionary interest. Www irs gov e pay For qualified charitable transfers, you can use the factor for the month in which you made the contribution or for either of the 2 months preceding that month. Www irs gov e pay   Publication 1457 also contains actuarial factors for computing the value of a remainder interest in a charitable remainder annuity trust and a pooled income fund. Www irs gov e pay Publication 1458 contains the factors for valuing the remainder interest in a charitable remainder unitrust. Www irs gov e pay You can download Publications 1457 and 1458 from www. Www irs gov e pay irs. Www irs gov e pay gov. Www irs gov e pay In addition, they are available for purchase via the website of the U. Www irs gov e pay S. Www irs gov e pay Government Printing Office, by phone at (202) 512-1800, or by mail from the: Superintendent of Documents P. Www irs gov e pay O. Www irs gov e pay Box 371954 Pittsburgh, PA 15250-7954 Tables containing actuarial factors for transfers to pooled income funds may also be found in Income Tax Regulation 1. Www irs gov e pay 642(c)-6(e)(6), transfers to charitable remainder unitrusts in Regulation 1. Www irs gov e pay 664-4(e), and other transfers in Regulation 20. Www irs gov e pay 2031-7(d)(6). Www irs gov e pay Special factors. Www irs gov e pay   If you need a special factor for an actual transaction, you can request a letter ruling. Www irs gov e pay Be sure to include the date of birth of each person the duration of whose life may affect the value of the interest. Www irs gov e pay Also include copies of the relevant instruments. Www irs gov e pay IRS charges a user fee for providing special factors. Www irs gov e pay   For more information about requesting a ruling, see Revenue Procedure 2006-1 (or annual update), 2006-1 I. Www irs gov e pay R. Www irs gov e pay B. Www irs gov e pay 1. Www irs gov e pay Revenue Procedure 2006-1 is available at www. Www irs gov e pay irs. Www irs gov e pay gov/irb/2006-01_IRB/ar06. Www irs gov e pay html. Www irs gov e pay   For information on the circumstances under which a charitable deduction may be allowed for the donation of a partial interest in property not in trust, see Partial Interest in Property Not in Trust, later. Www irs gov e pay Certain Life Insurance and Annuity Contracts The value of an annuity contract or a life insurance policy issued by a company regularly engaged in the sale of such contracts or policies is the amount that company would charge for a comparable contract. Www irs gov e pay But if the donee of a life insurance policy may reasonably be expected to cash the policy rather than hold it as an investment, then the FMV is the cash surrender value rather than the replacement cost. Www irs gov e pay If an annuity is payable under a combination annuity contract and life insurance policy (for example, a retirement income policy with a death benefit) and there was no insurance element when it was transferred to the charity, the policy is treated as an annuity contract. Www irs gov e pay Partial Interest in Property Not in Trust Generally, no deduction is allowed for a charitable contribution, not made in trust, of less than your entire interest in property. Www irs gov e pay However, this does not apply to a transfer of less than your entire interest if it is a transfer of: A remainder interest in your personal residence or farm, An undivided part of your entire interest in property, or A qualified conservation contribution. Www irs gov e pay Remainder Interest in Real Property The amount of the deduction for a donation of a remainder interest in real property is the FMV of the remainder interest at the time of the contribution. Www irs gov e pay To determine this value, you must know the FMV of the property on the date of the contribution. Www irs gov e pay Multiply this value by the appropriate factor. Www irs gov e pay Publications 1457 and 1458 contain these factors. Www irs gov e pay You must make an adjustment for depreciation or depletion using the factors shown in Publication 1459, Actuarial Values (Book Gimel). Www irs gov e pay You can use the factors for the month in which you made the contribution or for either of the two months preceding that month. Www irs gov e pay See the earlier discussion on Annuities, Interests for Life or Terms of Years, Remainders, and Reversions. Www irs gov e pay You can download Publication 1459 from www. Www irs gov e pay irs. Www irs gov e pay gov. Www irs gov e pay For this purpose, the term “depreciable property” means any property subject to wear and tear or obsolescence, even if not used in a trade or business or for the production of income. Www irs gov e pay If the remainder interest includes both depreciable and nondepreciable property, for example a house and land, the FMV must be allocated between each kind of property at the time of the contribution. Www irs gov e pay This rule also applies to a gift of a remainder interest that includes property that is part depletable and part not depletable. Www irs gov e pay Take into account depreciation or depletion only for the property that is subject to depreciation or depletion. Www irs gov e pay For more information, see section 1. Www irs gov e pay 170A-12 of the Income Tax Regulations. Www irs gov e pay Undivided Part of Your Entire Interest A contribution of an undivided part of your entire interest in property must consist of a part of each and every substantial interest or right you own in the property. Www irs gov e pay It must extend over the entire term of your interest in the property. Www irs gov e pay For example, you are entitled to the income from certain property for your life (life estate) and you contribute 20% of that life estate to a qualified organization. Www irs gov e pay You can claim a deduction for the contribution if you do not have any other interest in the property. Www irs gov e pay To figure the value of a contribution involving a partial interest, see Publication 1457. Www irs gov e pay If the only interest you own in real property is a remainder interest and you transfer part of that interest to a qualified organization, see the previous discussion on valuation of a remainder interest in real property. Www irs gov e pay Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. Www irs gov e pay Qualified organization. Www irs gov e pay   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charitable, religious, scientific, literary, educational, etc. Www irs gov e pay , organization, or An organization that is controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. Www irs gov e pay The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Www irs gov e pay Conservation purposes. Www irs gov e pay   Your contribution must be made only for one of the following conservation purposes. Www irs gov e pay Preserving land areas for outdoor recreation by, or for the education of, the general public. Www irs gov e pay Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Www irs gov e pay Preserving open space, including farmland and forest land, if it yields a significant public benefit. Www irs gov e pay It must be either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. Www irs gov e pay Preserving a historically important land area or a certified historic structure. Www irs gov e pay There must be some visual public access to the property. Www irs gov e pay Factors used in determining the type and amount of public access required include the historical significance of the property, the remoteness or accessibility of the site, and the extent to which intrusions on the privacy of individuals living on the property would be unreasonable. Www irs gov e pay Building in registered historic district. Www irs gov e pay   A contribution after July 25, 2006, of a qualified real property interest that is an easement or other restriction on the exterior of a building in a registered historic district is deductible only if it meets all of the following three conditions. Www irs gov e pay The restriction must preserve the entire exterior of the building and must prohibit any change to the exterior of the building that is inconsistent with its historical character. Www irs gov e pay You and the organization receiving the contribution must enter into a written agreement certifying, that the organization is a qualified organization and that it has the resources and commitment to maintain the property as donated. Www irs gov e pay If you make the contribution in a tax year beginning after August 17, 2006, you must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. Www irs gov e pay   If you make this type of contribution after February 12, 2007, and claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Www irs gov e pay See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Www irs gov e pay Qualified real property interest. Www irs gov e pay   This is any of the following interests in real property. Www irs gov e pay Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). Www irs gov e pay A remainder interest. Www irs gov e pay A restriction (granted in perpetuity) on the use that may be made of the real property. Www irs gov e pay Valuation. Www irs gov e pay   A qualified real property interest described in (1) should be valued in a manner that is consistent with the type of interest transferred. Www irs gov e pay If you transferred all the interest in the property, the FMV of the property is the amount of the contribution. Www irs gov e pay If you do not transfer the mineral interest, the FMV of the surface rights in the property is the amount of the contribution. Www irs gov e pay   If you owned only a remainder interest or an income interest (life estate), see Undivided Part of Your Entire Interest, earlier. Www irs gov e pay If you owned the entire property but transferred only a remainder interest (item (2)), see Remainder Interest in Real Property, earlier. Www irs gov e pay   In determining the value of restrictions, you should take into account the selling price in arm's-length transactions of other properties that have comparable restrictions. Www irs gov e pay If there are no comparable sales, the restrictions are valued indirectly as the difference between the FMVs of the property involved before and after the grant of the restriction. Www irs gov e pay   The FMV of the property before contribution of the restriction should take into account not only current use but the likelihood that the property, without the restriction, would be developed. Www irs gov e pay You should also consider any zoning, conservation, or historical preservation laws that would restrict development. Www irs gov e pay Granting an easement may increase, rather than reduce, the value of property, and in such a situation no deduction would be allowed. Www irs gov e pay Example. Www irs gov e pay   You own 10 acres of farmland. Www irs gov e pay Similar land in the area has an FMV of $2,000 an acre. Www irs gov e pay However, land in the general area that is restricted solely to farm use has an FMV of $1,500 an acre. Www irs gov e pay Your county wants to preserve open space and prevent further development in your area. Www irs gov e pay   You grant to the county an enforceable open space easement in perpetuity on 8 of the 10 acres, restricting its use to farmland. Www irs gov e pay The value of this easement is $4,000, determined as follows: FMV of the property before granting easement:   $2,000 × 10 acres $20,000 FMV of the property after granting easement:   $1,500 × 8 acres $12,000   $2,000 × 2 acres 4,000 16,000 Value of easement   $4,000   If you later transfer in fee your remaining interest in the 8 acres to another qualified organization, the FMV of your remaining interest is the FMV of the 8 acres reduced by the FMV of the easement granted to the first organization. Www irs gov e pay More information. Www irs gov e pay   For more information about qualified conservation contributions, see Publication 526. Www irs gov e pay Appraisals Appraisals are not necessary for items of property for which you claim a deduction of $5,000 or less. Www irs gov e pay (There is one exception, described next, for certain clothing and household items. Www irs gov e pay ) However, you generally will need an appraisal for donated property for which you claim a deduction of more than $5,000. Www irs gov e pay There are exceptions. Www irs gov e pay See Deductions of More Than $5,000, later. Www irs gov e pay The weight given an appraisal depends on the completeness of the report, the qualifications of the appraiser, and the appraiser's demonstrated knowledge of the donated property. Www irs gov e pay An appraisal must give all the facts on which to base an intelligent judgment of the value of the property. Www irs gov e pay The appraisal will not be given much weight if: All the factors that apply are not considered, The opinion is not supported with facts, such as purchase price and comparable sales, or The opinion is not consistent with known facts. Www irs gov e pay The appraiser's opinion is never more valid than the facts on which it is based; without these facts it is simply a guess. Www irs gov e pay The opinion of a person claiming to be an expert is not binding on the Internal Revenue Service. Www irs gov e pay All facts associated with the donation must be considered. Www irs gov e pay Deduction over $500 for certain clothing or household items. Www irs gov e pay   You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500. Www irs gov e pay See Household Goods and Used Clothing, earlier. Www irs gov e pay Cost of appraisals. Www irs gov e pay   You may not take a charitable contribution deduction for fees you pay for appraisals of your donated property. Www irs gov e pay However, these fees may qualify as a miscellaneous deduction, subject to the 2% limit, on Schedule A (Form 1040) if paid to determine the amount allowable as a charitable contribution. Www irs gov e pay Deductions of More Than $5,000 Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must attach Section B of Form 8283 to your tax return. Www irs gov e pay There are exceptions, discussed later. Www irs gov e pay You should keep the appraiser's report with your written records. Www irs gov e pay Records are discussed in Publication 526. Www irs gov e pay The phrase “similar items” means property of the same generic category or type (whether or not donated to the same donee), such as stamp collections, coin collections, lithographs, paintings, photographs, books, nonpublicly traded stock, nonpublicly traded securities other than nonpublicly traded stock, land, buildings, clothing, jewelry, furniture, electronic equipment, household appliances, toys, everyday kitchenware, china, crystal, or silver. Www irs gov e pay For example, if you give books to three schools and you deduct $2,000, $2,500, and $900, respectively, your claimed deduction is more than $5,000 for these books. Www irs gov e pay You must get a qualified appraisal of the books and for each school you must attach a fully completed Form 8283, Section B, to your tax return. Www irs gov e pay Exceptions. Www irs gov e pay   You do not need an appraisal if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane) for which your deduction is limited to the gross proceeds from its sale, Qualified intellectual property, such as a patent, Certain publicly traded securities described next, Inventory and other property donated by a corporation that are “qualified contributions” for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A) of the Internal Revenue Code, or Stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. Www irs gov e pay   Although an appraisal is not required for the types of property just listed, you must provide certain information about a donation of any of these types of property on Form 8283. Www irs gov e pay Publicly traded securities. Www irs gov e pay   Even if your claimed deduction is more than $5,000, neither a qualified appraisal nor Section B of Form 8283 is required for publicly traded securities that are: Listed on a stock exchange in which quotations are published on a daily basis, Regularly traded in a national or regional over-the-counter market for which published quotations are available, or Shares of an open-end investment company (mutual fund) for which quotations are published on a daily basis in a newspaper of general circulation throughout the United States. Www irs gov e pay Publicly traded securities that meet these requirements must be reported on Form 8283, Section A. Www irs gov e pay   A qualified appraisal is not required, but Form 8283, Section B, Parts I and IV, must be completed, for an issue of a security that does not meet the requirements just listed but does meet these requirements: The issue is regularly traded during the computation period (defined later) in a market for which there is an “interdealer quotation system” (defined later), The issuer or agent computes the “average trading price” (defined later) for the same issue for the computation period, The average trading price and total volume of the issue during the computation period are published in a newspaper of general circulation throughout the United States, not later than the last day of the month following the end of the calendar quarter in which the computation period ends, The issuer or agent keeps books and records that list for each transaction during the computation period the date of settlement of the transaction, the name and address of the broker or dealer making the market in which the transaction occurred, and the trading price and volume, and The issuer or agent permits the Internal Revenue Service to review the books and records described in item (4) with respect to transactions during the computation period upon receiving reasonable notice. Www irs gov e pay   An interdealer quotation system is any system of general circulation to brokers and dealers that regularly disseminates quotations of obligations by two or more identified brokers or dealers who are not related to either the issuer or agent who computes the average trading price of the security. Www irs gov e pay A quotation sheet prepared and distributed by a broker or dealer in the regular course of business and containing only quotations of that broker or dealer is not an interdealer quotation system. Www irs gov e pay   The average trading price is the average price of all transactions (weighted by volume), other than original issue or redemption transactions, conducted through a United States office of a broker or dealer who maintains a market in the issue of the security during the computation period. Www irs gov e pay Bid and asked quotations are not taken into account. Www irs gov e pay   The computation period is weekly during October through December and monthly during January through September. Www irs gov e pay The weekly computation periods during October through December begin with the first Monday in October and end with the first Sunday following the last Monday in December. Www irs gov e pay Nonpublicly traded stock. Www irs gov e pay   If you contribute nonpublicly traded stock, for which you claim a deduction of $10,000 or less, a qualified appraisal is not required. Www irs gov e pay However, you must attach Form 8283 to your tax return, with Section B, Parts I and IV, completed. Www irs gov e pay Deductions of More Than $500,000 If you claim a deduction of more than $500,000 for a donation of property, you must attach a qualified appraisal of the property to your return. Www irs gov e pay This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual property. Www irs gov e pay If you do not attach the appraisal, you cannot deduct your contribution, unless your failure to attach the appraisal is due to reasonable cause and not to willful neglect. Www irs gov e pay Qualified Appraisal Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser. Www irs gov e pay You must also complete Form 8283, Section B, and attach it to your tax return. Www irs gov e pay See Deductions of More Than $5,000, earlier. Www irs gov e pay A qualified appraisal is an appraisal document that: Is made, signed, and dated by a qualified appraiser (defined later) in accordance with generally accepted appraisal standards, Meets the relevant requirements of Regulations section 1. Www irs gov e pay 170A-13(c)(3) and Notice 2006-96, 2006-46 I. Www irs gov e pay R. Www irs gov e pay B. Www irs gov e pay 902 (available at www. Www irs gov e pay irs. Www irs gov e pay gov/irb/2006-46_IRB/ar13. Www irs gov e pay html), Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property, Does not involve a prohibited appraisal fee, and Includes certain information (covered later). Www irs gov e pay You must receive the qualified appraisal before the due date, including extensions, of the return on which a charitable contribution deduction is first claimed for the donated property. Www irs gov e pay If the deduction is first claimed on an amended return, the qualified appraisal must be received before the date on which the amended return is filed. Www irs gov e pay Form 8283, Section B, must be attached to your tax return. Www irs gov e pay Generally, you do not need to attach the qualified appraisal itself, but you should keep a copy as long as it may be relevant under the tax law. Www irs gov e pay There are four exceptions. Www irs gov e pay If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the appraisal. Www irs gov e pay See Paintings, Antiques, and Other Objects of Art, earlier. Www irs gov e pay If you claim a deduction of more than $500,000 for a donation of property, you must attach the appraisal. Www irs gov e pay See Deductions of More Than $500,000, earlier. Www irs gov e pay If you claim a deduction of more than $500 for an article of clothing, or a household item, that is not in good used condition or better, that you donated after August 17, 2006, you must attach the appraisal. Www irs gov e pay See Deduction over $500 for certain clothing or household items, earlier. Www irs gov e pay If you claim a deduction in a tax year beginning after August 17, 2006, for an easement or other restriction on the exterior of a building in a historic district, you must attach the appraisal. Www irs gov e pay See Building in registered historic district, earlier. Www irs gov e pay Prohibited appraisal fee. Www irs gov e pay   Generally, no part of the fee arrangement for a qualified appraisal can be based on a percentage of the appraised value of the property. Www irs gov e pay If a fee arrangement is based on what is allowed as a deduction, after Internal Revenue Service examination or otherwise, it is treated as a fee based on a percentage of appraised value. Www irs gov e pay However, appraisals are not disqualified when an otherwise prohi