Publication 561 (Rev. April 2007) P561

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Publication 561 Contents
(Rev. April 2007)
Cat. No. 15109Q Introduction ..................... 1
What Is Fair Market Value (FMV)? ..... 2of the
Treasury Determining Fair Market Value ...... 2
Determining Problems in Determining Fair
Internal Market Value ............... 3
Service Valuation of Various Kinds of
the Value of Property .................... 4
Household Goods .............. 4
Donated Used Clothing ................. 4
Jewelry and Gems .............. 4
Paintings, Antiques, and Other
Property Objects of Art .............. 4
Collections ................... 5
Cars, Boats, and Aircraft .......... 5
Inventory .................... 5
Patents ..................... 5
Stocks and Bonds .............. 5
Real Estate ................... 6
Interest in a Business ............ 7
Annuities, Interests for Life or
Terms of Years, Remainders,
and Reversions ............. 7
Certain Life Insurance and
Annuity Contracts ............ 7
Partial Interest in Property Not
in Trust ................... 7
Appraisals ...................... 8
Deductions of More Than $5,000 .... 9
Deductions of More Than
$500,000 ................. 9
Qualified Appraisal .............. 9
Form 8283 ...................11
Internal Revenue Service Review
of Appraisals ............... 11
Penalty ........................11
How To Get Tax Help ..............12
Index ..........................14
This publication is designed to help donors and
appraisers determine the value of property
(other than cash) that is given to qualified orga-
nizations. It also explains what kind of informa-
tion you must have to support the charitable
contribution deduction you claim on your return.
This publication does not discuss how to
figure the amount of your deduction for charita-
ble contributions or written records and substan-
tiation required. See Publication 526, Charitable
Contributions, for this information.
Comments and suggestions. We welcome
your comments about this publication and your
suggestions for future editions.
You can write to us at the following address:
Get forms and other information
Internal Revenue Service
faster and easier by:
Individual Forms and Publications Branch
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
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We respond to many letters by telephone. Factors. In making and supporting the valu- Cost or Selling Price of
Therefore, it would be helpful if you would in- ation of property, all factors affecting value are the Donated Property
clude your daytime phone number, including the relevant and must be considered. These in-
The cost of the property to you or the actual
area code, in your correspondence. clude:
selling price received by the qualified organiza-
You can email us at * (The The cost or selling price of the item, tion may be the best indication of its FMV. How-
asterisk must be included in the address.)
ever, because conditions in the market change,
Sales of comparable properties,
Please put “Publications Comment” on the sub-
the cost or selling price of property may have
ject line. Although we cannot respond individu- Replacement cost, and less weight if the property was not bought or sold
ally to each email, we do appreciate your
Opinions of experts.
feedback and will consider your comments as reasonably close to the date of contribution.
we revise our tax products. The cost or selling price is a good indication
These factors are discussed later. Also, see of the property’s value if:
Ordering forms and publications. Visit Table 1 for a summary of questions to ask as to download forms and The purchase or sale took place close to
you consider each factor.
publications, call 1-800-829-3676, or write to the the valuation date in an open market,
address below and receive a response within 10 Date of contribution. Ordinarily, the date of a The purchase or sale was at
business days after your request is received. contribution is the date that the transfer of the “arm’s-length,”
property takes place.
The buyer and seller knew all relevant
National Distribution Center Stock. If you deliver, without any conditions, facts,
P.O. Box 8903 a properly endorsed stock certificate to a quali-
Bloomington, IL 61702 8903 The buyer and seller did not have to act,
fied organization or to an agent of the organiza-
tion, the date of the contribution is the date of
delivery. If the certificate is mailed and received
Tax questions. If you have a tax question, The market did not change between the
through the regular mail, it is the date of mailing.
visit or call 1-800-829-1040. We date of purchase or sale and the valuation
If you deliver the certificate to a bank or broker
cannot answer tax questions sent to either of the date.
acting as your agent or to the issuing corporation
above addresses. or its agent, for transfer into the name of the
Example. Tom Morgan, who is not a dealer
organization, the date of the contribution is the
Useful Items in gems, bought an assortment of gems for
date the stock is transferred on the books of the
You may want to see: corporation. $5,000 from a promoter. The promoter claimed
that the price was “wholesale” even though he
Publication Options. If you grant an option to a qualified and other dealers made similar sales at similar
organization to buy real property, you have not
526 Charitable Contributions prices to other persons who were not dealers.
made a charitable contribution until the organi- The promoter said that if Tom kept the gems for
zation exercises the option. The amount of the
Form (and Instructions) more than 1 year and then gave them to charity,
contribution is the FMV of the property on the Tom could claim a charitable deduction of
8282 Donee Information Return date the option is exercised minus the exercise $15,000, which, according to the promoter,
8283 Noncash Charitable Contributions would be the value of the gems at the time of
contribution. Tom gave the gems to a qualified
8283-V Payment Voucher for Filing Fee Example. You grant an option to a local charity 13 months after buying them.
Under Section 170(f)(13) university, which is a qualified organization, to
See How To Get Tax Help, near the end of The selling price for these gems had not
buy real property. Under the option, the univer-
this publication, for information about getting changed from the date of purchase to the date
sity could buy the property at any time during a
these publications and forms. he donated them to charity. The best evidence
2-year period for $40,000. The FMV of the prop-
of FMV depends on actual transactions and not
erty on the date the option is granted is $50,000.
on some artificial estimate. The $5,000 charged
In the following tax year, the university exer-
Tom and others is, therefore, the best evidence
cises the option. The FMV of the property on the
of the maximum FMV of the gems.
date the option is exercised is $55,000. There-
What Is Fair fore, you have made a charitable contribution of
Market Value (FMV)? $15,000 ($55,000, the FMV, minus $40,000, the Terms of the purchase or sale. The terms of
exercise price) in the tax year the option is exer- the purchase or sale should be considered in
To figure how much you may deduct for property cised. determining FMV if they influenced the price.
that you contribute, you must first determine its These terms include any restrictions, under-
fair market value on the date of the contribution. standings, or covenants limiting the use or dis-
Determining position of the property.
Fair market value. Fair market value (FMV) is Fair Market Value
the price that property would sell for on the open Rate of increase or decrease in value. Un-
Determining the value of donated property
market. It is the price that would be agreed on less you can show that there were unusual cir-
would be a simple matter if you could rely only
between a willing buyer and a willing seller, with cumstances, it is assumed that the increase or
on fixed formulas, rules, or methods. Usually it is
neither being required to act, and both having decrease in the value of your donated property
not that simple. Using such formulas, etc., sel-
reasonable knowledge of the relevant facts. If from your cost has been at a reasonable rate.
dom results in an acceptable determination of
you put a restriction on the use of property you For time adjustments, an appraiser may con-
FMV. There is no single formula that always
donate, the FMV must reflect that restriction. sider published price indexes for information on
applies when determining the value of property.
general price trends, building costs, commodity
This is not to say that a valuation is only
Example 1. If you give used clothing to the
costs, securities, and works of art sold at auction
guesswork. You must consider all the facts and
Salvation Army, the FMV would be the price that
in arm’s-length sales.
circumstances connected with the property,
typical buyers actually pay for clothing of this
such as its desirability, use, and scarcity.
age, condition, style, and use. Usually, such
Example. Bill Brown bought a painting for
For example, donated furniture should not be
items are worth far less than what you paid for
$10,000. Thirteen months later he gave it to an
evaluated at some fixed rate such as 15% of the
art museum, claiming a charitable deduction of
cost of new replacement furniture. When the
$15,000 on his tax return. The appraisal of the
Example 2. If you donate land and restrict furniture is contributed, it may be out of style or
painting should include information showing that
its use to agricultural purposes, you must value in poor condition, therefore having little or no
there were unusual circumstances that justify a
the land at its value for agricultural purposes, market value. On the other hand, it may be an
50% increase in value for the 13 months Bill held
even though it would have a higher FMV if it antique, the value of which could not be deter-
the property.
were not restricted. mined by using any formula.
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Replacement CostTable 1. Factors That Affect FMV
The cost of buying, building, or manufacturing
IF the factor you are
property similar to the donated item should be
considering is... THEN you should ask these questions...
considered in determining FMV. However, there
must be a reasonable relationship between the
Was the purchase or sale of the property reasonably close to thecost or selling price replacement cost and the FMV.
date of contribution? The replacement cost is the amount it would
Was any increase or decrease in value, as compared to your cost, cost to replace the donated item on the valuation
at a reasonable rate? date. Often there is no relationship between the
Do the terms of purchase or sale limit what can be done with the replacement cost and the FMV. If the supply of
property? the donated property is more or less than the
Was there an arm’s-length offer to buy the property close to the demand for it, the replacement cost becomes
valuation date? less important.
To determine the replacement cost of the
How similar is the property sold to the property donated?sales of comparable donated property, find the “estimated replace-
properties How close is the date of sale to the valuation date? ment cost new.” Then subtract from this figure
Was the sale at arm’s-length? an amount for depreciation due to the physical
What was the condition of the market at the time of sale? condition and obsolescence of the donated
property. You should be able to show the rela-
tionship between the depreciated replacement
What would it cost to replace the donated property?replacement cost cost and the FMV, as well as how you arrived at
Is there a reasonable relationship between replacement cost and the “estimated replacement cost new.”
Is the supply of the donated property more or less than the demand
for it? Opinions of Experts
Generally, the weight given to an expert’s opin-
Is the expert knowledgeable and competent?opinions of experts
ion on matters such as the authenticity of a coin
Is the opinion thorough and supported by facts and experience?
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
Arm’s-length offer. An arm’s-length offer to her that if she kept the Bibles for more than 1
the thoroughness with which the opinion is sup-
buy the property close to the valuation date may year and then gave them to a qualified organiza- ported by experience and facts. For an expert’s
help to prove its value if the person making the tion, she could claim a charitable deduction for opinion to deserve much weight, the facts must
offer was willing and able to complete the trans- the “retail” price of $30,000. Thirteen months support the opinion. For additional information,
action. To rely on an offer, you should be able to later she gave all the Bibles to a church that she see Appraisals, later.
show proof of the offer and the specific amount selected from a list provided by the promoter. At
to be paid. Offers to buy property other than the the time of her donation, wholesale dealers were
donated item will help to determine value if the Problems in Determining
selling similar quantities of Bibles to the general
other property is reasonably similar to the Fair Market Value
public for $10,000.
donated property.
There are a number of problems in determining
The FMV of the Bibles is $10,000, the price
the FMV of donated property.
at which similar quantities of Bibles were being
Sales of Comparable sold to others at the time of the contribution.
Unusual Market
Example 2. The facts are the same as in
The sales prices of properties similar to the Conditions
Example 1, except that the promoter gave Mary
donated property are often important in deter-
Black a second option. The promoter said that if
mining the FMV. The weight to be given to each The sale price of the property itself in an
Mary wanted a charitable deduction within 1
sale depends on the following. arm’s-length transaction in an open market is
year of the purchase, she could buy the 500 often the best evidence of its value. When you
The degree of similarity between the prop- Bibles at the “retail” price of $30,000, paying rely on sales of comparable property, the sales
erty sold and the donated property. only $10,000 in cash and giving a promissory must have been made in an open market. If
The time of the sale whether it was note for the remaining $20,000. The principal those sales were made in a market that was
close to the valuation date. artificially supported or stimulated so as not to
and interest on the note would not be due for 12
be truly representative, the prices at which the
The circumstances of the sale whether it years. According to the promoter, Mary could
sales were made will not indicate the FMV.
was at arm’s-length with a knowledgeable then, within 1 year of the purchase, give the
buyer and seller, with neither having to For example, liquidation sale prices usually
Bibles to a qualified organization and claim the
act. do not indicate the FMV. Also, sales of stock
full $30,000 retail price as a charitable contribu- under unusual circumstances, such as sales of
tion. She purchased the Bibles under the sec-
The conditions of the market in which the small lots, forced sales, and sales in a restricted
sale was made whether unusually in- ond option and, 3 months later, gave them to a market, may not represent the FMV.
flated or deflated. church, which will use the books for church pur-
The comparable sales method of valuing real
estate is explained later under Valuation of Vari- Selection of
At the time of the gift, the promoter was
ous Kinds of Property. Comparable Sales
selling similar lots of Bibles for either $10,000 or
$30,000. The difference between the two prices Using sales of comparable property is an impor-
Example 1. Mary Black, who is not a book was solely at the discretion of the buyer. The tant method for determining the FMV of donated
dealer, paid a promoter $10,000 for 500 copies promoter was a willing seller for $10,000. There- property. However, the amount of weight given
of a single edition of a modern translation of the fore, the value of Mary’s contribution of the Bi- to a sale depends on the degree of similarity
Bible. The promoter had claimed that the price bles is $10,000, the amount at which similar lots between the comparable and the donated
was considerably less than the “retail” price, and
of Bibles could be purchased from the promoter properties. The degree of similarity must be
gave her a statement that the books had a total
close enough so that this selling price would
retail value of $30,000. The promoter advised by members of the general public.
Publication 561 (April 2007) Page 3
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have been given consideration by reasonably objects valued at $20,000 or more, a photo-
Household Goods graph of a size and quality fully showing the
well-informed buyers or sellers of the property.
object, preferably an 8 x 10 inch color photo-
The FMV of used household goods, such as
Example. You give a rare, old book to your graph or a color transparency no smaller than 4
furniture, appliances, and linens, is usually
former college. The book is a third edition and is x 5 inches, must be provided upon request.
much lower than the price paid when new. Such
in poor condition because of a missing back used property may have little or no market value Art valued at $50,000 or more. If you donate
cover. You discover that there was a sale for because of its worn condition. It may be out of an item of art that has been appraised at
$300, near the valuation date, of a first edition of style or no longer useful. $50,000 or more, you can request a Statement
the book that was in good condition. Although You cannot take a deduction for household of Value for that item from the IRS. You must
the contents are the same, the books are not at goods donated after August 17, 2006, unless request the statement before filing the tax return
all similar because of the different editions and they are in good used condition or better. A that reports the donation. Your request must
their physical condition. Little consideration household good that is not in good used condi- include the following.
would be given to the selling price of the $300 tion or better for which you take a deduction of
A copy of a qualified appraisal of the item.
property by knowledgeable buyers or sellers. more than $500 requires a qualified appraisal. See Qualified Appraisal, later.
See Deduction over $500 for certain clothing or
household items, later. A $2,500 check or money order payable to
Future Events If the property is valuable because it is old or the Internal Revenue Service for the user
unique, see the discussion under Paintings, An- fee that applies to your request regarding
You may not consider unexpected events hap- tiques, and Other Objects of, two, or three items of art. Add $250
pening after your donation of property in making for each item in excess of three.
the valuation. You may consider only the facts Used Clothing
known at the time of the gift, and those that A completed Form 8283, Section B.
could be reasonably expected at the time of the Used clothing and other personal items are usu- The location of the IRS territory that has
gift. ally worth far less than the price you paid for examination responsibility for your return.
them. Valuation of items of clothing does not
Example. You give farmland to a qualified If your request lacks essential information, you
lend itself to fixed formulas or methods.
charity. The transfer provides that your mother will be notified and given 30 days to provide the
The price that buyers of used items actually
will have the right to all income and full use of the missing information.
pay in used clothing stores, such as consign-
property for her life. Even though your mother Send your request to:
ment or thrift shops, is an indication of the value.
dies 1 week after the transfer, the value of the You cannot take a deduction for clothing
property on the date it is given is its present Internal Revenue Service
donated after August 17, 2006, unless it is in
value, subject to the life interest as estimated Attention: Art Appraisal (C:AP:ART)
good used condition or better. An item of cloth-
from actuarial tables. You may not take a higher P.O. Box 27720
ing that is not in good used condition or better for
deduction because the charity received full use McPherson Station
which you take a deduction of more than $500
and possession of the land only 1 week after the Washington, DC 20038
requires a qualified appraisal. See Deduction
transfer. over $500 for certain clothing or household
Refunds. You can withdraw your request
items, later.
for a Statement of Value at any time before it is
For valuable furs or very expensive gowns, a
Using Past Events to issued. However, the IRS will not refund the user
Form 8283 may have to be sent with your tax
Predict the Future fee if you do.
return. If the IRS declines to issue a Statement of
A common error is to rely too much on past Value in the interest of efficient tax administra-
events that do not fairly reflect the probable Jewelry and Gems tion, the IRS will refund the user fee.
future earnings and FMV.
Jewelry and gems are of such a specialized Authenticity. The authenticity of the donated
Example. You give all your rights in a suc- nature that it is almost always necessary to get art must be determined by the appraiser.
cessful patent to your favorite charity. Your rec- an appraisal by a specialized jewelry appraiser. Physical condition. Important items in the
ords show that before the valuation date there The appraisal should describe, among other valuation of antiques and art are physical condi-
were three stages in the patent’s history of earn- things, the style of the jewelry, the cut and set- tion and extent of restoration. These have a
ings. First, there was rapid growth in earnings ting of the gem, and whether it is now in fashion. significant effect on the value and must be fully
when the invention was introduced. Then, there If not in fashion, the possibility of having the reported in an appraisal. An antique in damaged
was a period of high earnings when the inven- property redesigned, recut, or reset should be condition, or lacking the “original brasses,” may
tion was being exploited. Finally, there was a reported in the appraisal. The stone’s coloring, be worth much less than a similar piece in excel-
decline in earnings when competing inventions weight, cut, brilliance, and flaws should be re- lent condition.
were introduced. The entire history of earnings ported and analyzed. Sentimental personal
may be relevant in estimating the future earn- value has no effect on FMV. But if the jewelry Art appraisers. More weight will usually be
ings. However, the appraiser must not rely too was owned by a famous person, its value might given to an appraisal prepared by an individual
much on the stage of rapid growth in earnings, increase. specializing in the kind and price range of the art
or of high earnings. The market conditions at being appraised. Certain art dealers or apprais-
those times do not represent the condition of the ers specialize, for example, in old masters, mod-
Paintings, Antiques,
market at the valuation date. What is most signif- ern art, bronze sculpture, etc. Their opinions on
and Other Objects of Art
icant is the trend of decline in earnings up to the the authenticity and desirability of such art would
valuation date. For more information about do- usually be given more weight than the opinions
Your deduction for contributions of paintings,
nations of patents, see Patents, later. of more generalized art dealers or appraisers.
antiques, and other objects of art, should be
They can report more recent comparable sales
supported by a written appraisal from a qualified
to support their opinion.
and reputable source, unless the deduction is
To identify and locate experts on unique,
$5,000 or less. Examples of information that
specialized items or collections, you may wish to
Valuation of Various should be included in appraisals of art objects
use the current Official Museum Directory of the
paintings in particular are found later under
Kinds of Property American Association of Museums. It lists mu-
Qualified Appraisal.
seums both by state and by category.
This section contains information on determin- Art valued at $20,000 or more. If you claim a To help you locate a qualified appraiser for
ing the FMV of ordinary kinds of donated prop- deduction of $20,000 or more for donations of your donation, you may wish to ask an art histo-
erty. For information on appraisals, see art, you must attach a complete copy of the rian at a nearby college or the director or curator
Appraisals, later. signed appraisal to your return. For individual of a local museum. The Yellow Pages often list
Page 4 Publication 561 (April 2007)
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specialized art and antique dealers, auction- Americana, foreign imports, Bibles, and scien- dealer retail value, of a similar vehicle. However,
eers, and art appraisers. You may be able to find tific books. the FMV may be less than that amount if the
a qualified appraiser on the Internet. You may vehicle has engine trouble, body damage, high
Modest value of collection. If the collec-
also contact associations of dealers for gui- mileage, or any type of excessive wear. The
tion you are donating is of modest value, not
dance. FMV of a donated vehicle is the same as the
requiring a written appraisal, the following infor- price listed in a used vehicle pricing guide for a
mation may help you in determining the FMV. private party sale only if the guide lists a sales
Collections A book that is very old, or very rare, is not price for a vehicle that is the same make, model,
necessarily valuable. There are many books and year, sold in the same area, in the same
Since many kinds of hobby collections may be that are very old or rare, but that have little or no condition, with the same or similar options or
the subject of a charitable donation, it is not market value. accessories, and with the same or similar war-
possible to discuss all of the possible col-
Condition of book. The condition of a book ranties as the donated vehicle.
lectibles in this publication. Most common are
may have a great influence on its value. Collec-
rare books, autographs, sports memorabilia,
Example. You donate a used car in poor
tors are interested in items that are in fine, or at
dolls, manuscripts, stamps, coins, guns, phono-
condition to a local high school for use by stu-
least good, condition. When a book has a miss-
graph records, and natural history items. Many
dents studying car repair. A used car guide
ing page, a loose binding, tears, stains, or is
of the elements of valuation that apply to paint-
shows the dealer retail value for this type of car
otherwise in poor condition, its value is greatly
ings and other objects of art, discussed earlier,
in poor condition is $1,600. However, the guide
also apply to miscellaneous collections.
shows the price for a private party sale of the car
Other factors. Some other factors in the
Reference material. Publications available to is only $750. The FMV of the car is considered to
valuation of a book are the kind of binding
help you determine the value of many kinds of be no more than $750.
(leather, cloth, paper), page edges, and illustra-
collections include catalogs, dealers’ price lists,
tions (drawings and photographs). Collectors
and specialized hobby periodicals. When using Boats. Except for inexpensive small boats,
usually want first editions of books. However,
one of these price guides, you must use the the valuation of boats should be based on an
because of changes or additions, other editions
current edition at the date of contribution. How- appraisal by a marine surveyor because the
are sometimes worth as much as, or more than,
ever, these sources are not always reliable in- physical condition is so critical to the value.
the first edition.
dicators of FMV and should be supported by
More information. Your deduction for a
other evidence. Manuscripts, autographs, diaries, and simi- donated car, boat, or airplane generally is lim-
For example, a dealer may sell an item for lar items. When these items are handwritten, ited to the gross proceeds from its sale by the
much less than is shown on a price list, particu- or at least signed by famous people, they are qualified organization. This rule applies if the
larly after the item has remained unsold for a often in demand and are valuable. The writings claimed value of the donated vehicle is more
long time. The price an item sold for in an auc- of unknowns also may be of value if they are of than $500. In certain cases, you can deduct the
tion may have been the result of a rigged sale or unusual historical or literary importance. Deter- vehicle’s FMV. For details, see Publication 526.
a mere bidding duel. The appraiser must ana- mining the value of such material is difficult. For
lyze the reference material, and recognize and example, there may be a great difference in
make adjustments for misleading entries. If you Inventory
value between two diaries that were kept by a
are donating a valuable collection, you should famous person one kept during childhood and
get an appraisal. If your donation appears to be If you donate any inventory item to a charitable
the other during a later period in his or her life.
of little value, you may be able to make a satis- organization, the amount of your deductible con-
The appraiser determines a value in these
factory valuation using reference materials tribution generally is the FMV of the item, minus
cases by applying knowledge and judgment to
available at a state, city, college, or museum any gain you would have realized if you had sold
such factors as comparable sales and condi-
library. the item at its FMV on the date of the gift. For
tions. more information, see Publication 526.
Stamp collections. Most libraries have cata-
Signatures. Signatures, or sets of signatures,
logs or other books that report the publisher’s Patents
that were cut from letters or other papers usually
estimate of values. Generally, two price levels
have little or no value. But complete sets of the
are shown for each stamp: the price postmarked To determine the FMV of a patent, you must
signatures of U.S. presidents are in demand.
and the price not postmarked. Stamp dealers take into account, among other factors:
generally know the value of their merchandise
and are able to prepare satisfactory appraisals Whether the patented technology has
Cars, Boats, and Aircraft
of valuable collections. been made obsolete by other technology;
If you donate a car, a boat, or an aircraft to a
Coin collections. Many catalogs and other Any restrictions on the donee’s use of, or
charitable organization, its FMV must be deter-
reference materials show the writer’s or pub- ability to transfer, the patented technology;
lisher’s opinion of the value of coins on or near and
Certain commercial firms and trade organi-
the date of the publication. Like many other zations publish monthly or seasonal guides for The length of time remaining before the
collectors’ items, the value of a coin depends on different regions of the country, containing com- patent expires.
the demand for it, its age, and its rarity. Another plete dealer sale prices or dealer average prices
important factor is the coin’s condition. For ex- for recent model years. Prices are reported for However, your deduction for a donation of a
ample, there is a great difference in the value of each make, model, and year. These guides also patent or other intellectual property is its FMV,
a coin that is in mint condition and a similar coin provide estimates for adjusting for unusual minus any gain you would have realized if you
that is only in good condition. equipment, unusual mileage, and physical con- had sold the property at its FMV on the date of
Catalogs usually establish a category for dition. The prices are not “official,” and these the gift. Generally, this means your deduction is
coins, based on their physical condition mint publications are not considered an appraisal of the lesser of the property’s FMV or its basis. For
or uncirculated, extremely fine, very fine, fine, any specific donated property. But they do pro- details, see Publication 526.
very good, good, fair, or poor with a different vide clues for making an appraisal and suggest
valuation for each category. relative prices for comparison with current sales Stocks and Bonds
Books. The value of books is usually deter- and offerings in your area.
mined by selecting comparable sales and ad- These publications are sometimes available The value of stocks and bonds is the FMV of a
justing the prices according to the differences from public libraries or at a bank, credit union, or share or bond on the valuation date. See Date of
between the comparable sales and the item finance company. You can also find pricing in- contribution, earlier, under What Is Fair Market
being evaluated. This is difficult to do and, ex- formation about used cars on the Internet. Value (FMV).
cept for a collection of little value, should be An acceptable measure of the FMV of a
done by a specialized appraiser. Within the gen- donated car, boat, or airplane is an amount not Selling prices on valuation date. If there is
eral category of literary property, there are deal- in excess of the price listed in a used vehicle an active market for the contributed stocks or
ers who specialize in certain areas, such as pricing guide for a private party sale, not the bonds on a stock exchange, in an
Publication 561 (April 2007) Page 5
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Prices only before or after valuation date, but
over-the-counter market, or elsewhere, the FMV Real Estate
not both. If no selling prices or bona fide bid
of each share or bond is the average price be-
and asked prices are available on a date within a
tween the highest and lowest quoted selling Because each piece of real estate is unique and
reasonable period before the valuation date, but
prices on the valuation date. For example, if the its valuation is complicated, a detailed appraisal
are available on a date within a reasonable pe-
highest selling price for a share was $11, and by a professional appraiser is necessary.
riod after the valuation date, or vice versa, then
the lowest $9, the average price is $10. You get The appraiser must be thoroughly trained in
the average price between the highest and low-
the average price by adding $11 and $9 and the application of appraisal principles and the-
est of such available prices may be treated as
dividing the sum by 2. ory. In some instances the opinions of equally
the value. qualified appraisers may carry unequal weight,
No sales on valuation date. If there were
such as when one appraiser has a better knowl-
no sales on the valuation date, but there were Large blocks of stock. When a large block of edge of local conditions.
sales within a reasonable period before and stock is put on the market, it may lower the
after the valuation date, you determine FMV by The appraisal report must contain a com-
selling price of the stock if the supply is greater
taking the average price between the highest plete description of the property, such as street
than the demand. On the other hand, market
and lowest sales prices on the nearest date address, legal description, and lot and block
forces may exist that will afford higher prices for
before and on the nearest date after the valua- number, as well as physical features, condition,
large blocks of stock. Because of the many fac-
tion date. Then you weight these averages in and dimensions. The use to which the property
tors to be considered, determining the value of
inverse order by the respective number of trad- is put, zoning and permitted uses, and its poten-
large blocks of stock usually requires the help of
ing days between the selling dates and the valu- tial use for other higher and better uses are also
experts specializing in underwriting large quanti-
ation date. relevant.
ties of securities, or in trading in the securities of
the industry of which the particular company is a
Example. On the day you gave stock to a In general, there are three main approaches
qualified organization, there were no sales of the to the valuation of real estate. An appraisal may
stock. Sales of the stock nearest the valuation require the combined use of two or three meth-
Unavailable prices or closely held corpora-
date took place two trading days before the ods rather than one method only.
tion. If selling prices or bid and asked prices
valuation date at an average selling price of $10 are not available, or if securities of a closely held
and three trading days after the valuation date at corporation are involved, determine the FMV by 1. Comparable Sales
an average selling price of $15. The FMV on the considering the following factors.
valuation date was $12, figured as follows: The comparable sales method compares the
For bonds, the soundness of the security, donated property with several similar properties
[(3 x $10) + (2 x $15)] ÷5 = $12 the interest yield, the date of maturity, and that have been sold. The selling prices, after
other relevant factors. adjustments for differences in date of sale, size,
Listings on more than one stock ex-
For shares of stock, the company’s net condition, and location, would then indicate the
change. Stocks or bonds listed on more than
worth, prospective earning power and divi- estimated FMV of the donated property.
one stock exchange are valued based on the
dend-paying capacity, and other relevant
prices of the exchange on which they are princi- If the comparable sales method is used to
pally dealt. This applies if these prices are pub- determine the value of unimproved real property
lished in a generally available listing or (land without significant buildings, structures, or
Other factors. Other relevant factors in-
publication of general circulation. If this is not any other improvements that add to its value),
applicable, and the stocks or bonds are reported the appraiser should consider the following fac-
on a composite listing of combined exchanges in tors when comparing the potential comparable
The nature and history of the business,
a publication of general circulation, use the com- property and the donated property:
especially its recent history,
posite list. See also Unavailable prices or Location, size, and zoning or use restric-
The goodwill of the business,
closely held corporation, later. tions,
The economic outlook in the particular in-
Bid and asked prices on valuation date. If Accessibility and road frontage, and avail-
there were no sales within a reasonable period able utilities and water rights,
The company’s position in the industry, its
before and after the valuation date, the FMV is
Riparian rights (right of access to and use
competitors, and its management, and
the average price between the bona fide bid and of the water by owners of land on the bank
asked prices on the valuation date. The value of securities of corporations en- of a river) and existing easements,
gaged in the same or similar business. rights-of-way, leases, etc.,
Example. Although there were no sales of
For preferred stock, the most important factors
Blue Corporation stock on the valuation date, Soil characteristics, vegetative cover, and
are its yield, dividend coverage, and protection
bona fide bid and asked prices were available on status of mineral rights, and
of its liquidation preference.
that date of $14 and $16, respectively. The FMV
Other factors affecting value.
is $15, the average price between the bid and You should keep complete financial and other
asked prices. information on which the valuation is based. For each comparable sale, the appraisal must
This includes copies of reports of examinations
No prices on valuation date. If there were include the names of the buyer and seller, the
of the company made by accountants, engi-
no prices available on the valuation date, you deed book and page number, the date of sale
neers, or any technical experts on or close to the
determine FMV by taking the average prices and selling price, a property description, the
valuation date.
between the bona fide bid and asked prices on amount and terms of mortgages, property
the closest trading date before and after the surveys, the assessed value, the tax rate, and
Restricted securities. Some classes of stock
valuation date. Both dates must be within a the assessor’s appraised FMV.
cannot be traded publicly because of restrictions
reasonable period. Then you weight these aver- The comparable selling prices must be ad-
imposed by the Securities and Exchange Com-
ages in inverse order by the respective number justed to account for differences between the
mission, or by the corporate charter or a trust
of trading days between the bid and asked dates sale property and the donated property. Be-
agreement. These restricted securities usually
and the valuation date. cause differences of opinion may arise between
trade at a discount in relation to freely traded appraisers as to the degree of comparability and
Example. On the day you gave stock to a the amount of the adjustment considered neces-
To arrive at the FMV of restricted securities,
qualified organization, no prices were available. sary for comparison purposes, an appraiser
factors that you must consider include the resale
Bona fide bid and asked prices 3 days before the should document each item of adjustment.
provisions found in the restriction agreements,
valuation date were $10 and 2 days after the
the relative negotiating strengths of the buyer Only comparable sales having the least ad-
valuation date were $15. The FMV on the valua-
and seller, and the market experience of freely justments in terms of items and/or total dollar
tion date is $13, figured as follows:
traded securities of the same class as the re- adjustments should be considered as compara-
[(2 x $10) + (3 x $15)] ÷5 = $13 stricted securities. ble to the donated property.
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For information on the circumstances under
2. Capitalization of Income Annuities, Interests for which a charitable deduction may be allowed for
Life or Terms of
This method capitalizes the net income from the the donation of a partial interest in property not
Years, Remainders, and
property at a rate that represents a fair return on in trust, see Partial Interest in Property Not in
the particular investment at the particular time, Reversions Trust, later.
considering the risks involved. The key ele-
The value of these kinds of property is their
ments are the determination of the income to be Certain Life Insurance
present value, except in the case of annuities
capitalized and the rate of capitalization. and Annuity Contracts
under contracts issued by companies regularly
engaged in their sale. The valuation of these The value of an annuity contract or a life insur-
commercial annuity contracts and of insurance
3. Replacement Cost New or ance policy issued by a company regularly en-
policies is discussed later under Certain Life
Reproduction Cost Minus gaged in the sale of such contracts or policies is
Insurance and Annuity Contracts.
Observed Depreciation the amount that company would charge for a
To determine present value, you must know
comparable contract.
the applicable interest rate and use actuarial
This method, used alone, usually does not result
tables. But if the donee of a life insurance policy may
in a determination of FMV. Instead, it generally
reasonably be expected to cash the policy rather
tends to set the upper limit of value, particularly Interest rate. The applicable interest rate var- than hold it as an investment, then the FMV is
in periods of rising costs, because it is reasona- ies. It is announced monthly in a news release the cash surrender value rather than the re-
ble to assume that an informed buyer will not and published in the Internal Revenue Bulletin placement cost.
pay more for the real estate than it would cost to as a Revenue Ruling. The interest rate to use is
reproduce a similar property. Of course, this If an annuity is payable under a combination
under the heading “Rate Under Section 7520”
reasoning does not apply if a similar property annuity contract and life insurance policy (for
for a given month and year. You can call the IRS
cannot be created because of location, unusual example, a retirement income policy with a
office at 1-800-829-1040 to obtain this rate.
construction, or some other reason. Generally, death benefit) and there was no insurance ele-
this method serves to support the value deter- ment when it was transferred to the charity, the
Actuarial tables. You need to refer to actua-
policy is treated as an annuity contract.
mined from other methods. When the replace- rial tables to determine a qualified interest in the
ment cost method is applied to improved realty, form of an annuity, any interest for life or a term
the land and improvements are valued sepa- of years, or any remainder interest to a charita- Partial Interest
ble organization.
rately. in Property Not in Trust
Use the valuation tables set forth in IRS
The replacement cost of a building is figured Publications 1457, Actuarial Values (Book
by considering the materials, the quality of work- Generally, no deduction is allowed for a charita-
Aleph), and 1458, Actuarial Values (Book Beth).
manship, and the number of square feet or cubic ble contribution, not made in trust, of less than
Both of these publications provide tables con-
feet in the building. This cost represents the total your entire interest in property. However, this
taining actuarial factors to be used in determin-
cost of labor and material, overhead, and profit. does not apply to a transfer of less than your
ing the present value of an annuity, an interest
After the replacement cost has been figured, entire interest if it is a transfer of:
for life or for a term of years, or a remainder or
consideration must be given to the following A remainder interest in your personal resi-
reversionary interest. For qualified charitable
factors: dence or farm,
transfers, you can use the factor for the month in
Physical deterioration the wear and tear which you made the contribution or for either of An undivided part of your entire interest in
on the building itself, the 2 months preceding that month. property, or
Publication 1457 also contains actuarial fac-
Functional obsolescence usually in older A qualified conservation contribution.
tors for computing the value of a remainder
buildings with, for example, inadequate interest in a charitable remainder annuity trust
lighting, plumbing, or heating, small and a pooled income fund. Publication 1458 Remainder Interest in Real
rooms, or a poor floor plan, and contains the factors for valuing the remainder Property
interest in a charitable remainder unitrust. You
Economic obsolescence outside forces
can download Publications 1457 and 1458 from
causing the whole area to become less The amount of the deduction for a donation of a In addition, they are available for
desirable. remainder interest in real property is the FMV of
purchase via the website of the U. S. Govern- the remainder interest at the time of the contribu-
ment Printing Office, by phone at (202) tion. To determine this value, you must know the
Interest in a Business 512-1800, or by mail from the: FMV of the property on the date of the contribu-
Superintendent of Documents tion. Multiply this value by the appropriate factor.
The FMV of any interest in a business, whether
P.O. Box 371954 Publications 1457 and 1458 contain these fac-
a sole proprietorship or a partnership, is the Pittsburgh, PA 15250-7954 tors.
amount that a willing buyer would pay for the
You must make an adjustment for deprecia-
interest to a willing seller after consideration of
tion or depletion using the factors shown in Pub-
all relevant factors. The relevant factors to be Tables containing actuarial factors for transfers
lication 1459, Actuarial Values (Book Gimel).
considered in valuing the business are: to pooled income funds may also be found in
Income Tax Regulation 1.642(c)-6(e)(6), You can use the factors for the month in which
The FMV of the assets of the business, transfers to charitable remainder unitrusts in you made the contribution or for either of the two
The demonstrated earnings capacity of Regulation 1.664-4(e), and other transfers in months preceding that month. See the earlier
Regulation 20.2031-7(d)(6).
the business, based on a review of past discussion on Annuities, Interests for Life or
and current earnings, and Terms of Years, Remainders, and Reversions.
Special factors. If you need a special factor You can download Publication 1459 from
The other factors used in evaluating cor- for an actual transaction, you can request a
porate stock, if they apply. letter ruling. Be sure to include the date of birth For this purpose, the term “depreciable prop-
of each person the duration of whose life may erty” means any property subject to wear and
The value of the goodwill of the business affect the value of the interest. Also include tear or obsolescence, even if not used in a trade
should also be taken into consideration. You copies of the relevant instruments. IRS charges or business or for the production of income.
should keep complete financial and other infor- a user fee for providing special factors.
If the remainder interest includes both depre-
mation on which you base the valuation. This For more information about requesting a rul-
ciable and nondepreciable property, for exam-
includes copies of reports of examinations of the ing, see Revenue Procedure 2006-1 (or annual
ple a house and land, the FMV must be
business made by accountants, engineers, or update), 2006-1 I.R.B. 1. Revenue Procedure
allocated between each kind of property at the
any technical experts on or close to the valuation 2006-1 is available at
time of the contribution. This rule also applies to
Publication 561 (April 2007) Page 7
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a gift of a remainder interest that includes prop- must be some visual public access to the that have comparable restrictions. If there are no
erty that is part depletable and part not deplet- property. Factors used in determining the comparable sales, the restrictions are valued
able. Take into account depreciation or type and amount of public access required indirectly as the difference between the FMVs of
depletion only for the property that is subject to include the historical significance of the the property involved before and after the grant
depreciation or depletion. property, the remoteness or accessibility of the restriction.
For more information, see section 1.170A-12 of the site, and the extent to which intru- The FMV of the property before contribution
of the Income Tax Regulations. sions on the privacy of individuals living on of the restriction should take into account not
the property would be unreasonable. only current use but the likelihood that the prop-
erty, without the restriction, would be developed.
Undivided Part of Your Entire You should also consider any zoning, conserva-
Building in registered historic district. A
Interest tion, or historical preservation laws that would
contribution after July 25, 2006, of a qualified restrict development. Granting an easement
real property interest that is an easement or
A contribution of an undivided part of your entire may increase, rather than reduce, the value of
other restriction on the exterior of a building in a
interest in property must consist of a part of each property, and in such a situation no deduction
registered historic district is deductible only if it
and every substantial interest or right you own in would be allowed.
meets all of the following three conditions.
the property. It must extend over the entire term
Example. You own 10 acres of farmland.
of your interest in the property. For example, you 1. The restriction must preserve the entire ex- Similar land in the area has an FMV of $2,000 an
are entitled to the income from certain property terior of the building and must prohibit any acre. However, land in the general area that is
for your life (life estate) and you contribute 20% change to the exterior of the building that restricted solely to farm use has an FMV of
of that life estate to a qualified organization. You is inconsistent with its historical character. $1,500 an acre. Your county wants to preserve
can claim a deduction for the contribution if you
open space and prevent further development in
2. You and the organization receiving the
do not have any other interest in the property. To
your area.
contribution must enter into a written
figure the value of a contribution involving a
agreement certifying, that the organization
partial interest, see Publication 1457. You grant to the county an enforceable open
is a qualified organization and that it has
If the only interest you own in real property is space easement in perpetuity on 8 of the 10
the resources and commitment to maintain
a remainder interest and you transfer part of that acres, restricting its use to farmland. The value
the property as donated.
interest to a qualified organization, see the pre- of this easement is $4,000, determined as fol-
vious discussion on valuation of a remainder lows:
3. If you make the contribution in a tax year
interest in real property. beginning after August 17, 2006, you must FMV of the property before
include with your return: granting easement:
$2,000 × 10 acres ............ $20,000
Qualified Conservation a. A qualified appraisal, FMV of the property after
Contribution b. Photographs of the building’s entire ex- granting easement:
terior, and $1,500 × 8 acres ...... $12,000
A qualified conservation contribution is a contri-
$2,000 × 2 acres ...... 4,000 16,000
bution of a qualified real property interest to a c. A description of all restrictions on devel-
qualified organization to be used only for con- opment of the building, such as zoning Value of easement ...... $4,000
servation purposes. laws and restrictive covenants. If you later transfer in fee your remaining
Qualified organization. For purposes of a interest in the 8 acres to another qualified organ-
If you make this type of contribution after
qualified conservation contribution, a qualified ization, the FMV of your remaining interest is the
February 12, 2007, and claim a deduction of
organization is: FMV of the 8 acres reduced by the FMV of the
more than $10,000, your deduction will not be easement granted to the first organization.
A governmental unit, allowed unless you pay a $500 filing fee. See
Form 8283-V, Payment Voucher for Filing Fee
A publicly supported charitable, religious, More information. For more information
Under Section 170(f)(13), and its instructions.
scientific, literary, educational, etc., organi- about qualified conservation contributions, see
zation, or Publication 526.
Qualified real property interest. This is any
An organization that is controlled by, and of the following interests in real property.
operated for the exclusive benefit of, a
1. Your entire interest in real estate other
governmental unit or a publicly supported
than a mineral interest (subsurface oil,
charity. Appraisals
gas, or other minerals, and the right of
The organization also must have a commitment access to these minerals). Appraisals are not necessary for items of prop-
to protect the conservation purposes of the do- erty for which you claim a deduction of $5,000 or
2. A remainder interest.
nation and must have the resources to enforce less. (There is one exception, described next,
the restrictions. 3. A restriction (granted in perpetuity) on the for certain clothing and household items.) How-
use that may be made of the real property. ever, you generally will need an appraisal for
Conservation purposes. Your contribution donated property for which you claim a deduc-
must be made only for one of the following tion of more than $5,000. There are exceptions.
Valuation. A qualified real property interest
conservation purposes. See Deductions of More Than $5,000, later.
described in (1) should be valued in a manner
Preserving land areas for outdoor recrea- The weight given an appraisal depends on
that is consistent with the type of interest trans-
tion by, or for the education of, the general the completeness of the report, the qualifica-
ferred. If you transferred all the interest in the
public. tions of the appraiser, and the appraiser’s
property, the FMV of the property is the amount
demonstrated knowledge of the donated prop-
of the contribution. If you do not transfer the
Protecting a relatively natural habitat of erty. An appraisal must give all the facts on
mineral interest, the FMV of the surface rights in
fish, wildlife, or plants, or a similar ecosys- which to base an intelligent judgment of the
the property is the amount of the contribution.
tem. value of the property.
If you owned only a remainder interest or an
Preserving open space, including farmland income interest (life estate), see Undivided Part The appraisal will not be given much weight
and forest land, if it yields a significant of Your Entire Interest, earlier. If you owned the if:
public benefit. It must be either for the entire property but transferred only a remainder All the factors that apply are not consid-
scenic enjoyment of the general public or interest (item (2)), see Remainder Interest in ered,
under a clearly defined federal, state, or Real Property, earlier.
local governmental conservation policy. The opinion is not supported with facts,
In determining the value of restrictions, you
such as purchase price and comparable
Preserving a historically important land should take into account the selling price in
sales, or
area or a certified historic structure. There arm’s-length transactions of other properties
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The opinion is not consistent with known 170(e)(3)(A) of the Internal Revenue that broker or dealer is not an interdealer quota-
facts. tion system.
Code, or
The average trading price is the average
Stock in trade, inventory, or property held
The appraiser’s opinion is never more valid price of all transactions (weighted by volume),
primarily for sale to customers in the ordi-
than the facts on which it is based; without these other than original issue or redemption transac-
nary course of your trade or business.
facts it is simply a guess. tions, conducted through a United States office
The opinion of a person claiming to be an of a broker or dealer who maintains a market in
Although an appraisal is not required for the
expert is not binding on the Internal Revenue the issue of the security during the computation
types of property just listed, you must provide
Service. All facts associated with the donation period. Bid and asked quotations are not taken
certain information about a donation of any of
must be considered. into account.
these types of property on Form 8283. The computation period is weekly during Oc-
Deduction over $500 for certain clothing or Publicly traded securities. Even if your tober through December and monthly during
household items. You must include with your claimed deduction is more than $5,000, neither January through September. The weekly com-
return a qualified appraisal of any single item of a qualified appraisal nor Section B of Form 8283 putation periods during October through De-
clothing or any household item that is not in is required for publicly traded securities that are: cember begin with the first Monday in October
good used condition or better, that you donated and end with the first Sunday following the last
after August 17, 2006, and for which you deduct Listed on a stock exchange in which quo- Monday in December.
more than $500. See Household Goods and tations are published on a daily basis,
Used Clothing, earlier. Nonpublicly traded stock. If you contrib-
Regularly traded in a national or regional ute nonpublicly traded stock, for which you claim
over-the-counter market for which pub-
Cost of appraisals. You may not take a chari- a deduction of $10,000 or less, a qualified ap-
lished quotations are available, or
table contribution deduction for fees you pay for praisal is not required. However, you must at-
appraisals of your donated property. However, Shares of an open-end investment com- tach Form 8283 to your tax return, with Section
these fees may qualify as a miscellaneous de- B, Parts I and IV, completed.
pany (mutual fund) for which quotations
duction, subject to the 2% limit, on Schedule A are published on a daily basis in a news-
(Form 1040) if paid to determine the amount paper of general circulation throughout the Deductions of More Than
allowable as a charitable contribution. United States. $500,000
Publicly traded securities that meet these re-
Deductions of More If you claim a deduction of more than $500,000
quirements must be reported on Form 8283,
Than $5,000 for a donation of property, you must attach a
Section A. qualified appraisal of the property to your return.
Generally, if the claimed deduction for an item or A qualified appraisal is not required, but Form This does not apply to contributions of cash,
group of similar items of donated property is 8283, Section B, Parts I and IV, must be com- inventory, publicly traded stock, or intellectual
more than $5,000, you must get a qualified ap- pleted, for an issue of a security that does not property.
praisal made by a qualified appraiser, and you meet the requirements just listed but does meet If you do not attach the appraisal, you cannot
must attach Section B of Form 8283 to your tax these requirements: deduct your contribution, unless your failure to
return. There are exceptions, discussed later. attach the appraisal is due to reasonable cause
You should keep the appraiser’s report with your 1. The issue is regularly traded during the and not to willful neglect.
written records. Records are discussed in Publi- computation period (defined later) in a
cation 526. market for which there is an “interdealer Qualified Appraisal
The phrase “similar items” means property of quotation system” (defined later),
the same generic category or type (whether or Generally, if the claimed deduction for an item or
2. The issuer or agent computes the “aver-
not donated to the same donee), such as stamp group of similar items of donated property is
age trading price” (defined later) for the
collections, coin collections, lithographs, paint- more than $5,000, you must get a qualified ap-
same issue for the computation period,
ings, photographs, books, nonpublicly traded praisal made by a qualified appraiser. You must
stock, nonpublicly traded securities other than 3. The average trading price and total volume also complete Form 8283, Section B, and attach
nonpublicly traded stock, land, buildings, cloth- of the issue during the computation period it to your tax return. See Deductions of More
ing, jewelry, furniture, electronic equipment, are published in a newspaper of general Than $5,000, earlier.
household appliances, toys, everyday kitchen- circulation throughout the United States, A qualified appraisal is an appraisal docu-
ware, china, crystal, or silver. For example, if not later than the last day of the month ment that:
you give books to three schools and you deduct following the end of the calendar quarter in
$2,000, $2,500, and $900, respectively, your Is made, signed, and dated by a qualified
which the computation period ends,
claimed deduction is more than $5,000 for these appraiser (defined later) in accordance
4. The issuer or agent keeps books and rec-
books. You must get a qualified appraisal of the with generally accepted appraisal stan-
ords that list for each transaction during
books and for each school you must attach a dards,
the computation period the date of settle-
fully completed Form 8283, Section B, to your
Meets the relevant requirements of Regu-
ment of the transaction, the name and ad-
tax return. lations section 1.170A-13(c)(3) and Notice
dress of the broker or dealer making the
Exceptions. You do not need an appraisal if 2006-96, 2006-46 I.R.B. 902 (available at
market in which the transaction occurred,
the property is:,
and the trading price and volume, and
Nonpublicly traded stock of $10,000 or Relates to an appraisal made not earlier
5. The issuer or agent permits the Internal
less, than 60 days before the date of contribu-
Revenue Service to review the books and tion of the appraised property,
records described in item (4) with respect
A vehicle (including a car, boat, or air- to transactions during the computation pe-
plane) for which your deduction is limited Does not involve a prohibited appraisal
riod upon receiving reasonable notice.
to the gross proceeds from its sale, fee, and
An interdealer quotation system is any sys-
Qualified intellectual property, such as a Includes certain information (covered
tem of general circulation to brokers and dealers
patent, later).
that regularly disseminates quotations of obliga-
Certain publicly traded securities de- tions by two or more identified brokers or dealers You must receive the qualified appraisal
scribed next, who are not related to either the issuer or agent before the due date, including extensions, of the
who computes the average trading price of the
Inventory and other property donated by a return on which a charitable contribution deduc-
security. A quotation sheet prepared and distrib-
corporation that are “qualified contribu- tion is first claimed for the donated property. If
uted by a broker or dealer in the regular course
tions” for the care of the ill, the needy, or the deduction is first claimed on an amended
infants, within the meaning of section of business and containing only quotations of return, the qualified appraisal must be received
Publication 561 (April 2007) Page 9
Page 10 of 15 of Publication 561 13:14 - 17-APR-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
before the date on which the amended return is entered into) by or on behalf of the donor 2. The cost, date, and manner of acquisition.
filed. that relates to the use, sale, or other dispo- 3. A history of the item, including proof of
sition of the donated property, including, authenticity.
Form 8283, Section B, must be attached to for example, the terms of any agreement
your tax return. Generally, you do not need to 4. A professional quality image of the object.
or understanding that:
attach the qualified appraisal itself, but you
5. The facts on which the appraisal was
should keep a copy as long as it may be relevant a. Temporarily or permanently restricts a based, such as:
under the tax law. There are four exceptions. donee’s right to use or dispose of the
donated property,
If you claim a deduction of $20,000 or a. Sales or analyses of similar works by
more for donations of art, you must attach the artist, particularly on or around the
b. Earmarks donated property for a partic-
a complete copy of the appraisal. See valuation date.
ular use, or
Paintings, Antiques, and Other Objects of b. Quoted prices in dealer’s catalogs of
c. Reserves to, or confers upon, anyone
Art, earlier. the artist’s works or works of other art-
(other than a donee organization or an
If you claim a deduction of more than ists of comparable stature.
organization participating with a donee
$500,000 for a donation of property, you organization in cooperative fundraising) c. A record of any exhibitions at which the
must attach the appraisal. See Deductions any right to the income from the specific art object had been displayed.
of More Than $500,000, earlier. donated property or to the possession
d. The economic state of the art market at
of the property, including the right to
If you claim a deduction of more than $500
the time of valuation, particularly with
for an article of clothing, or a household vote donated securities, to acquire the
respect to the specific property.
item, that is not in good used condition or property by purchase or otherwise, or to
better, that you donated after August 17, designate the person having the in- e. The standing of the artist in his profes-
2006, you must attach the appraisal. See come, possession, or right to acquire sion and in the particular school or time
Deduction over $500 for certain clothing or the property, period.
household items, earlier.
5. The name, address, and taxpayer identifi-
If you claim a deduction in a tax year be- Number of qualified appraisals. A sepa-
cation number of the qualified appraiser
ginning after August 17, 2006, for an rate qualified appraisal is required for each item
and, if the appraiser is a partner, an em-
easement or other restriction on the exte- of property that is not included in a group of
ployee, or an independent contractor en-
rior of a building in a historic district, you similar items of property. You need only one
gaged by a person other than the donor,
must attach the appraisal. See Building in qualified appraisal for a group of similar items of
the name, address, and taxpayer identifi-
registered historic district, earlier. property contributed in the same tax year, but
cation number of the partnership or the you may get separate appraisals for each item.
person who employs or engages the ap-
Prohibited appraisal fee. Generally, no part A qualified appraisal for a group of similar items
of the fee arrangement for a qualified appraisal must provide all of the required information for
6. The qualifications of the qualified appraiser
can be based on a percentage of the appraised each item of similar property. The appraiser,
who signs the appraisal, including the ap-
value of the property. If a fee arrangement is however, may provide a group description for
praiser’s background, experience, educa-
based on what is allowed as a deduction, after selected items the total value of which is not
tion, and any membership in professional
Internal Revenue Service examination or other- more than $100.
appraisal associations,
wise, it is treated as a fee based on a percent-
age of appraised value. However, appraisals are Qualified appraiser. A qualified appraiser is
7. A statement that the appraisal was pre-
not disqualified when an otherwise prohibited an individual who meets all the following require-
pared for income tax purposes,
fee is paid to a generally recognized association ments.
8. The date (or dates) on which the property
that regulates appraisers if:
was valued, 1. The individual either:
The association is not organized for profit
9. The appraised FMV on the date (or ex-
and no part of its net earnings benefits any a. Has earned an appraisal designation
pected date) of contribution,
private shareholder or individual, from a recognized professional ap-
praiser organization for demonstrated
10. The method of valuation used to determine
The appraiser does not receive any com-
competency in valuing the type of prop-
FMV, such as the income approach, the
pensation from the association or any
erty being appraised, or
comparable sales or market data ap-
other persons for making the appraisal,
and proach, or the replacement cost less de- b. Has met certain minimum education
preciation approach, and and experience requirements. For real
The fee arrangement is not based in
property, the appraiser must be li-
whole or in part on the amount of the ap- 11. The specific basis for the valuation, such
censed or certified for the type of prop-
praised value that is allowed as a deduc- as any specific comparable sales transac-
erty being appraised in the state in
tion after an Internal Revenue Service tion.
which the property is located. For prop-
examination or otherwise.
erty other than real property, the ap-
Art objects. The following are examples of
praiser must have successfully
information that should be included in a descrip-
Information included in qualified appraisal. completed college or professional-level
tion of donated property. These examples are
A qualified appraisal must include the following coursework relevant to the property be-
for art objects. A similar detailed breakdown
information: ing valued, must have at least 2 years
should be given for other property. Appraisals of
of experience in the trade or business
1. A description of the property in sufficient art objects paintings in particular should in-
of buying, selling, or valuing the type of
detail for a person who is not generally clude all of the following.
property being valued, and must fully
familiar with the type of property to deter- 1. A complete description of the object, indi- describe in the appraisal his or her
mine that the property appraised is the cating the: qualifying education and experience.
property that was (or will be) contributed,
2. The physical condition of any tangible a. Size, 2. The individual regularly prepares apprais-
property, als for which he or she is paid.
b. Subject matter,
3. The date (or expected date) of contribu- 3. The individual demonstrates verifiable edu-
c. Medium,
tion, cation and experience in valuing the type
d. Name of the artist (or culture), and of property being appraised. To do this, the
4. The terms of any agreement or under-
appraiser can make a declaration in the
standing entered into (or expected to be e. Approximate date created.
Page 10 Publication 561 (April 2007)
Page 11 of 15 of Publication 561 13:14 - 17-APR-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
appraisal that, because of his or her back- 1. The appraiser knows or should have Refer the issue to the Commissioner’s Art
ground, experience, education, and mem- known the appraisal would be used in con- Advisory Panel (a group of dealers and
bership in professional associations, he or nection with a return or claim for refund, museum directors who review and recom-
she is qualified to make appraisals of the and mend acceptance or adjustment of taxpay-
type of property being valued. ers’ claimed values for major paintings,
2. The appraisal results in the 20% or 40%
4. The individual has not been prohibited sculptures, decorative arts, and antiques),
penalty for a valuation misstatement de-
from practicing before the IRS under sec- or
scribed later under Penalty.
tion 330(c) of title 31 of the United States Contract with an independent dealer,
The penalty imposed on the appraiser is the
Code at any time during the 3-year period scholar, or appraiser to appraise the prop-
smaller of:
ending on the date of the appraisal.
erty when the objects require appraisers of
5. The individual is not an excluded individ- 1. The greater of: highly specialized experience and knowl-
ual. edge.
a. 10% of the underpayment due to the
In addition, the appraiser must complete misstatement, or
Form 8283, Section B, Part III. More than one Responsibility of the Service. The Service is
b. $1,000, or
appraiser may appraise the property, provided responsible for reviewing appraisals, but it is not
that each complies with the requirements, in- responsible for making them. Supporting the
2. 125% of the gross income received for the
cluding signing the qualified appraisal and Form FMV listed on your return is your responsibility.
8283, Section B, Part III. appraisal.
Excluded individuals. The following per- In addition, any appraiser who falsely or The Service does not accept appraisals with-
sons cannot be qualified appraisers with respect fraudulently overstates the value of property de- out question. Nor does the Service recognize
to particular property. scribed in a qualified appraisal of a Form 8283 any particular appraiser or organization of ap-
that the appraiser has signed may be subject to
1. The donor of the property, or the taxpayer praisers.
a civil penalty for aiding and abetting as under-
who claims the deduction. statement of tax liability, and may have his or her
2. The donee of the property. appraisal disregarded. Timing of Service action. The Service gener-
3. A party to the transaction in which the do- ally does not approve valuations or appraisals
Form 8283
nor acquired the property being appraised, before the actual filing of the tax return to which
unless the property is donated within 2 the appraisal applies. In addition, the Service
Generally, if the claimed deduction for an item of
months of the date of acquisition and its generally does not issue advance rulings ap-
donated property is more than $5,000, you must
appraised value is not more than its acqui- proving or disapproving such appraisals.
attach Form 8283 to your tax return and com-
sition price. This applies to the person who
Exception. For a request submitted as de-
plete Section B.
sold, exchanged, or gave the property to
the donor, or any person who acted as an scribed earlier under Art valued at $50,000 or
If you do not attach Form 8283 to your return
agent for the transferor or donor in the more, the Service will issue a Statement of
and complete Section B, the deduction will not
transaction. Value that can be relied on by the donor of the
be allowed unless your failure was due to rea-
item of art.
4. Any person employed by any of the above sonable cause, and not willful neglect, or was
persons. For example, if the donor ac- due to a good faith omission. If the IRS requests
quired a painting from an art dealer, that you submit the form because you did not
neither the dealer nor persons employed attach it to your return, you must comply within
by the dealer can be qualified appraisers 90 days of the request or the deduction will be Penalty
for that painting. disallowed.
You may be liable for a penalty if you overstate
5. Any person related under section 267(b) of You must attach a separate Form 8283 for the value or adjusted basis of donated property.
the Internal Revenue Code to any of the each item of contributed property that is not part
above persons or married to a person re- of a group of similar items. If you contribute
lated under section 267(b) to any of the similar items of property to the same donee 20% penalty. The penalty is 20% of the un-
above persons. organization, you need attach only one Form derpayment of tax related to the overstatement
8283 for those items. If you contribute similar
6. An appraiser who appraises regularly for a if:
person in (1), (2), or (3), and who does not items of property to more than one donee organ- The value or adjusted basis claimed on
perform a majority of his or her appraisals ization, you must attach a separate form for the return is 200% (150% for returns filed
made during his or her tax year for other each donee. after August 17, 2006) or more of the cor-
rect amount, and
Internal Revenue Service
In addition, a person is not a qualified ap-
You underpaid your tax by more than
praiser for a particular donation if the donor had Review of Appraisals
knowledge of facts that would cause a reasona- $5,000 because of the overstatement.
ble person to expect the appraiser to falsely In reviewing an income tax return, the Service
overstate the value of the donated property. For may accept the claimed value of the donated 40% penalty. The penalty is 40%, rather than
example, if the donor and the appraiser make an property, based on information or appraisals 20%, if:
agreement concerning the amount at which the sent with the return, or may make its own deter-
property will be valued, and the donor knows The value or adjusted basis claimed on
mination of FMV. In either case, the Service
that amount is more than the FMV of the prop- the return is 400% (200% for returns filed
erty, the appraiser is not a qualified appraiser for after August 17, 2006) or more of the cor-
Contact the taxpayer to get more informa-
the donation. rect amount, and
Appraiser penalties. An appraiser who You underpaid your tax by more than
Refer the valuation problem to a Service
prepares an incorrect appraisal may have to pay $5,000 because of the overstatement.
a penalty if: appraiser or valuation specialist,
Publication 561 (April 2007) Page 11
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
View Internal Revenue Bulletins (IRBs) stores, copy centers, city and county gov-
published in the last few years. ernment offices, credit unions, and office
How To Get Tax Help supply stores have a collection of products
Figure your withholding allowances using available to print from a CD or photocopy
You can get help with unresolved tax issues, our withholding calculator. from reproducible proofs. Also, some IRS
order free publications and forms, ask tax ques-
Sign up to receive local and national tax offices and libraries have the Internal Rev-
tions, and get information from the IRS in sev- news by email. enue Code, regulations, Internal Revenue
eral ways. By selecting the method that is best
Bulletins, and Cumulative Bulletins avail-
for you, you will have quick and easy access to Get information on starting and operating able for research purposes.
tax help. a small business.
Services. You can walk in to your local
Contacting your Taxpayer Advocate. The Taxpayer Assistance Center every busi-
Taxpayer Advocate Service is an independent ness day for personal, face-to-face tax
Phone. Many services are available by
organization within the IRS whose employees help. An employee can explain IRS letters,
assist taxpayers who are experiencing eco- request adjustments to your tax account,
nomic harm, who are seeking help in resolving or help you set up a payment plan. If you
tax problems that have not been resolved Ordering forms, instructions, and publica- need to resolve a tax problem, have ques-
through normal channels, or who believe that an tions. Call 1-800-829-3676 to order cur- tions about how the tax law applies to your
IRS system or procedure is not working as it rent-year forms, instructions, and individual tax return, or you’re more com-
should. publications, and prior-year forms and in- fortable talking with someone in person,
You can contact the Taxpayer Advocate structions. You should receive your order visit your local Taxpayer Assistance
Service by calling toll-free 1-877-777-4778 or within 10 days. Center where you can spread out your
TTY/TDD 1-800-829-4059 to see if you are eligi- records and talk with an IRS representa-
Asking tax questions. Call the IRS with
ble for assistance. You can also call or write to your tax questions at 1-800-829-1040. tive face-to-face. No appointment is nec-
your local taxpayer advocate, whose phone essary, but if you prefer, you can call your
number and address are listed in your local Solving problems. You can get local Center and leave a message re-
telephone directory and in Publication 1546, The face-to-face help solving tax problems questing an appointment to resolve a tax
Taxpayer Advocate Service of the IRS - How To every business day in IRS Taxpayer As- account issue. A representative will call
Get Help With Unresolved Tax Problems. You sistance Centers. An employee can ex- you back within 2 business days to sched-
can file Form 911, Application for Taxpayer As- plain IRS letters, request adjustments to ule an in-person appointment at your con-
sistance Order, or ask an IRS employee to com- your account, or help you set up a pay- venience. To find the number, go to
plete it on your behalf. For more information, go ment plan. Call your local Taxpayer Assis- or look in the
to Center for an appointment. To find phone book under United States Govern-
the number, go to
Low income tax clinics (LITCs). LITCs are ment, Internal Revenue Service.
tacts or look in the phone book under
independent organizations that provide low in- United States Government, Internal Reve-
come taxpayers with representation in federal Mail. You can send your order for
nue Service.
tax controversies with the IRS for free or for a forms, instructions, and publications to
nominal charge. The clinics also provide tax TTY/TDD equipment. If you have access the address below. You should receive
education and outreach for taxpayers with lim- to TTY/TDD equipment, call a response within 10 business days after your
ited English proficiency or who speak English as 1-800-829-4059 to ask tax questions or to request is received.
a second language. Publication 4134, Low In- order forms and publications.
come Taxpayer Clinic List, provides information National Distribution Center
TeleTax topics. Call 1-800-829-4477 to lis-
on clinics in your area. It is available at www.irs. ten to pre-recorded messages covering P.O. Box 8903
gov or at your local IRS office. various tax topics. Bloomington, IL 61702-8903
Free tax services. To find out what services Refund information. To check the status of CD for tax products. You can order
are available, get Publication 910, IRS Guide to your 2006 refund, call 1-800-829-4477 Publication 1796, IRS Tax Products
Free Tax Services. It contains a list of free tax and press 1 for automated refund informa- CD, and obtain:
publications and describes other free tax infor- tion or call 1-800-829-1954. Be sure to
A CD that is released twice so you have
mation services, including tax education and wait at least 6 weeks from the date you the latest products. The first release ships
assistance programs and a list of TeleTax top- filed your return (3 weeks if you filed elec-
ics. in January and the final release ships in
tronically). Have your 2006 tax return March.
available because you will need to know
Internet. You can access the IRS web- your social security number, your filing
site at 24 hours a day, 7 Current-year forms, instructions, and pub-
status, and the exact whole dollar amount
days a week to: lications.
of your refund.
E-file your return. Find out about commer- Prior-year forms, instructions, and publica-
cial tax preparation and e-file services tions.
Evaluating the quality of our telephone serv-
available free to eligible taxpayers. Bonus: Historical Tax Products DVD -
ices. To ensure IRS representatives give accu-
Check the status of your 2006 refund. Ships with the final release.
rate, courteous, and professional answers, we
Click on Where’s My Refund. Wait at least use several methods to evaluate the quality of Tax Map: an electronic research tool and
6 weeks from the date you filed your re- our telephone services. One method is for a finding aid.
turn (3 weeks if you filed electronically). second IRS representative to listen in on or
Have your 2006 tax return available be- Tax law frequently asked questions.
record random telephone calls. Another is to ask
cause you will need to know your social some callers to complete a short survey at the Tax Topics from the IRS telephone re-
security number, your filing status, and the end of the call. sponse system.
exact whole dollar amount of your refund.
Fill-in, print, and save features for most tax
Walk-in. Many products and services
Download forms, instructions, and publica- forms.
are available on a walk-in basis.
Internal Revenue Bulletins.
Order IRS products online.
Products. You can walk in to many post Toll-free and email technical support.
Research your tax questions online. offices, libraries, and IRS offices to pick up
Buy the CD from National Technical Informa-
Search publications online by topic or certain forms, instructions, and publica-
tion Service (NTIS) at for
keyword. tions. Some IRS offices, libraries, grocery
Page 12 Publication 561 (April 2007)
Page 13 of 15 of Publication 561 13:14 - 17-APR-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
$25 (no handling fee) or call 1-877-CDFORMS All the business tax forms, instructions, A site map of the CD to help you navigate
(1-877-233-6767) toll free to buy the CD for $25 the pages of the CD with ease.
and publications needed to successfully
(plus a $5 handling fee). Price is subject to manage a business. An interactive “Teens in Biz” module that
change. gives practical tips for teens about starting
Tax law changes for 2006.
their own business, creating a business
CD for small businesses. Publication Tax Map: an electronic research tool and plan, and filing taxes.
3207, The Small Business Resource finding aid.
Guide CD for 2006, is a must for every An updated version of this CD is available
Web links to various government agen-
small business owner or any taxpayer about to each year in early April. You can get a free copy
cies, business associations, and IRS orga-
start a business. This year’s CD includes: by calling 1-800-829-3676 or by visiting
Helpful information, such as how to pre-
“Rate the Product” survey your opportu-
pare a business plan, find financing for
your business, and much more. nity to suggest changes for future editions.
Publication 561 (April 2007) Page 13
Page 14 of 15 of Publication 561 13:14 - 17-APR-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
To help us develop a more useful index, please let us know if you have ideas for index entries.
Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
Terms of purchase or
sale ...................... 2
Aircraft ....................... 5 Jewelry and gems ............ 4 Stamps ....................... 5
Annuities ..................... 7 Statement of Value .......... 11
Annuity contracts ............ 7 Stocks ....................... 5
Antiques ..................... 4 Suggestions for
Date of contribution .......... 2 Life insurance ................ 7 publication ................. 1
Appraisals ................... 8 Deductions of more than
Cost of ..................... 9 $5,000 ...................... 9 M
IRS review of .............. 11 Deductions of more than T
Market conditions, effect on
Qualified appraisal .......... 9 $500,000 ................... 9 Tax help ..................... 12
value ....................... 3
Appraiser ................... 10 Taxpayer Advocate .......... 12
More information (See Tax help)
Art objects ................... 4 FTTY/TDD information ........ 12
Valued at $20,000 or Fair market value ............. 2
more ..................... 4 O
Comparable properties, sales U
Valued at $50,000 or Opinions of experts .......... 3
of ........................ 3
more ..................... 4 Used clothing ..............4, 9
Cost ........................ 2
Assistance (See Tax help) Date of contribution .......... 2 PV
Determining FMV ............ 2 Paintings ..................... 4
Opinions of experts .......... 3
BValuation of property ......... 4
Partial interest ............... 7
Problems in determining Annuities ................... 7
Boats ........................ 5 Past events, effect on
FMV...................... 3 Cars, boats, and aircraft ..... 5
Bonds ........................ 5 value ....................... 4
Replacement cost ........... 3 Collections .................. 5
Books ........................ 5 Patents ....................... 5 Household goods ........... 4
Form 8283 ................... 11
Business, interest in ......... 7 Penalties: Interest in a business ........ 7
Formulas, use in valuing Imposed on appraiser ...... 11 Inventory ................... 5
property .................... 2 Imposed on taxpayer ....... 11
CJewelry and gems ........... 4
Free tax services ............ 12 Publications (See Tax help)
Cars .......................... 5 Life insurance and annuity
Future events, effect on Publicly traded securities .... 9 contracts ................. 7
Clothing, used .............4, 9 value ....................... 4 Paintings, antiques, art
Coins ........................ 5 objects ................... 4
Collections ................... 5 HPartial interest in property .... 7
Books ...................... 5 Qualified appraisal ........... 9
Help (See Tax help) Patents ..................... 5
Coins ....................... 5 Qualified appraiser .......... 10 Real estate ................. 6
Historic building ............. 8
Stamps ..................... 5 Qualified conservation Remainder interests ......... 7
Household goods .......... 4, 9
Comments on publication .... 1 contribution ................ 8 Reversion interests .......... 7
Comparable properties, sales Stocks and bonds ........... 5
of .......................... 3 IRTerms of years .............. 7
Conservation contribution .... 8 Interest in a business ........ 7 Used clothing ............... 4
Real estate ................... 6
Cost .......................... 2 Inventory ..................... 5 Remainder interests .......... 7
Rate of increase or IRS review of appraisals ..... 11 Replacement cost ............ 3
decrease ................. 2 Exception .................. 11 Reversion interests .......... 7
Page 14 Publication 561 (April 2007)
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Tax Publications for Individual Taxpayers
General Guides
Your Rights as a Taxpayer
Your Federal Income Tax (For
Farmer’s Tax Guide
Tax Guide for Small Business (For
Individuals Who Use Schedule C or
Tax Calendars for 2007
Highlights of 2006 Tax Changes
IRS Guide to Free Tax Services
Specialized Publications
Armed Forces’ Tax Guide
Travel, Entertainment, Gift, and Car
Exemptions, Standard Deduction, and
Filing Information
Medical and Dental Expenses (Including
the Health Coverage Tax Credit)
Child and Dependent Care Expenses
Divorced or Separated Individuals
Tax Withholding and Estimated Tax
Foreign Tax Credit for Individuals
U.S. Government Civilian Employees
Stationed Abroad
Social Security and Other Information
for Members of the Clergy and
Religious Workers
U.S. Tax Guide for Aliens
Moving Expenses
Selling Your Home
Credit for the Elderly or the Disabled
Taxable and Nontaxable Income
Charitable Contributions
Residential Rental Property
Commonly Used Tax Forms
Miscellaneous Deductions
Tax Information for First-Time
Reporting Tip Income
Installment Sales
Sales and Other Dispositions of Assets
Casualties, Disasters, and Thefts
Investment Income and Expenses
Basis of Assets
Recordkeeping for Individuals
Older Americans’ Tax Guide
Community Property
Examination of Returns, Appeal Rights,
and Claims for Refund
Survivors, Executors, and
Determining the Value of Donated
Mutual Fund Distributions
Tax Guide for Individuals With Income
From U.S. Possessions
Pension and Annuity Income
Casualty, Disaster, and Theft Loss
Workbook (Personal-Use Property)
Business Use of Your Home (Including
Use by Daycare Providers)
Individual Retirement Arrangements
Tax Highlights for U.S. Citizens and
Residents Going Abroad
What You Should Know About the IRS
Collection Process
Earned Income Credit (EIC)
Tax Guide to U.S. Civil Service
Retirement Benefits
Tax Highlights for Persons with
Bankruptcy Tax Guide
Social Security and Equivalent
Railroad Retirement Benefits
How Do I Adjust My Tax Withholding?
Passive Activity and At-Risk Rules
Household Employer’s Tax Guide
Tax Rules for Children and
Home Mortgage Interest Deduction
How To Depreciate Property
Practice Before the IRS and
Power of Attorney
Introduction to Estate and Gift Taxes
The IRS Will Figure Your Tax
Per Diem Rates
Reporting Cash Payments of Over
$10,000 (Received in a Trade or
The Taxpayer Advocate Service of the
IRS – How to Get Help With
Unresolved Tax Problems
Derechos del Contribuyente
Cómo Preparar la Declaración de
Impuesto Federal
Crédito por Ingreso del Trabajo
English-Spanish Glossary of Words
and Phrases Used in Publications
Issued by the Internal Revenue
U.S. Tax Treaties
Spanish Language Publications
Que es lo que Debemos Saber sobre
el Proceso de Cobro del IRS
Informe de Pagos en Efectivo en
Exceso de $10,000 (Recibidos en
una Ocupación o Negocio)
See How To Get Tax Help for a variety of ways to get forms, including by computer, phone, and mail.
U.S. Individual Income Tax Return
Itemized Deductions & Interest and
Ordinary Dividends
Profit or Loss From Business
Net Profit From Business
Capital Gains and Losses
Supplemental Income and Loss
Earned Income Credit
Profit or Loss From Farming
Credit for the Elderly or the Disabled
Income Tax Return for Single and
Joint Filers With No Dependents
Self-Employment Tax
U.S. Individual Income Tax Return
Interest and Ordinary Dividends for
Form 1040A Filers
Child and Dependent Care
Expenses for Form 1040A Filers
Credit for the Elderly or the
Disabled for Form 1040A Filers
Estimated Tax for Individuals
Amended U.S. Individual Income Tax Return
Unreimbursed Employee Business
Underpayment of Estimated Tax by
Individuals, Estates, and Trusts
Power of Attorney and Declaration of
Child and Dependent Care Expenses
Moving Expenses
Depreciation and Amortization
Application for Automatic Extension of Time
To File U.S. Individual Income Tax Return
Investment Interest Expense Deduction
Additional Taxes on Qualified Plans (Including
IRAs) and Other Tax-Favored Accounts
Alternative Minimum Tax—Individuals
Noncash Charitable Contributions
Change of Address
Expenses for Business Use of Your Home
Nondeductible IRAs
Passive Activity Loss Limitations
Sch A&B
Sch C
Sch C-EZ
Sch D
Sch E
Sch F
Sch H Household Employment Taxes
Sch R
Sch SE
Sch 1
Sch 2
Sch 3
2106 Employee Business Expenses
Form Number and Title
Sch J Income Averaging for Farmers and Fishermen
Additional Child Tax Credit8812
Education Credits8863
Form Number and Title
See How To Get Tax Help for a variety of ways to get publications, including
by computer, phone, and mail.
970 Tax Benefits for Education
971 Innocent Spouse Relief
Sch D-1 Continuation Sheet for Schedule D
972 Child Tax Credit
Tax Guide for U.S. Citizens and
Resident Aliens Abroad
Net Operating Losses (NOLs) for
Individuals, Estates, and Trusts
Tax-Sheltered Annuity Plans (403(b)
Health Savings Accounts and Other
Tax-Favored Health Plans
Installment Agreement Request9465
Publication 561 (April 2007) Page 15

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