"Gary Bode has just completed our tax returns for the first time and I am totally satisfied with his level of service. He has been very attentive, asked all the right questions, and not only fixed some problems from our previous accountant, but also set us up for future success through a thorough and professional analysis of our corporate structure in conjunction with several personal variables.Gary Bode CPA: I believe in documenting every aspect of Form 8283. For a free initial phone consult, please call 399-2705.
Form 1065 CPAs use Form 8283, Non-cash Charitable Contributions, when the Partnerships donates non-cash charitable items. Examples of such items include:
- Conservation Easements; abuse of these gifts by developers, led to a $500 filing fee if the declared easement value is greater than $10,000.
- Works of Art; here’s a link to our post on IRS valuation of charitable art donations.
- The present value of the remainder interest ,in a charitable remainder trust, funded with non-cash property. Here’s our post on charitable remainder trusts.
- Publicly traded securities.
- Qualified vehicles.
- LLC interests.
Unique Features of Form 8283
Form 8283 calculates the tax-deductible value for charitable items. This can be subjective. And the IRS expresses ongoing skepticism over charitable contributions. So, the Partnership must essentially prove every aspect of the donation.
- Section B, Part II of Form 8283 requires a Partner signature.
- Section B Part III of Form 8283 requires an appraiser declaration.
- Section B Part IV of Form 8283 requires a direct acknowledgement of receipt by the donee.
- A copy of Form 8283 is given to every Partner whose Schedule K-1, from Form 1065, reflects the donation.
Form 1065 CPA Example Documentation for Form 8283
A good CPA looks at Form 8283 from the IRS perspective, to anticipate possible tax audit issues. For a donated vehicle, I would submit:
- A Summary page of supplemental information attached, including my calculation of donated value.
- Proof of the original cost.
- The depreciation schedule for the vehicle.
- An Internet print out of the blue book value.
- A statement of receipt from the charitable donee.
Is this Form 8283 documentation overkill? Maybe, but it demonstrates a willingness for transparency and shows professional courtesy to the examining IRS agent.
We’re a CPA firm with a virtual office to serve your Partnership, where ever it’s located.
Please check some of our posts to better gauge our ability and proactive philosophy. We offer a free initial phone consult, for Form 8823 and/or Form 1065, at (910) 399-2705 .
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