Don’t forget to file form 8282 if donated property is later sold!

Christian Shaeffer Non Profit Exempt Organizations 1 Comment

Many non profit exempt organizations receive donated items of property from generous donors. It may be a piano, car, artwork, or other items valued at more than $500. if these items are later disposed of for consideration (sold for money), IRS form 8282 may be required. This form is used by the IRS to better track donated items in which a charitable tax deduction was given and then the items is later disposed of by the charitable organization.

IRS form 8282, Donee Information Return, is used by non profit exempt organizations to report the disposition (sale) of certain items (charitable deduction property) that were donated to the organization within the past three years. The simple two page form identifies the name of the charitable organization, original donor, successor donee’s (if applicable), and a description of the donated property that is later disposed.

The form needs to be filed within 125 days of the date of disposition. It’s not enough to simply report the gain or loss on form 990. The penalty for not filing form 8282 is $50 per incident. Not a huge penalty but every dollar counts and it’s best to be in compliance whenever possible. The form is not required if the value of the donated item is under $500. It’s also not necessary to file the form if the donated property is consumed or distributed for free while fulfilling the organization’s exempt charitable purpose.

IRS Form 8282

Comments 1

  1. What are the effects of a nonprofit art gallery selling a donated art piece within 3 years? If they sell it for the same price as the appraisal, are there any effects?

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