Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Part I, Line A Column (h) I have entered $800 as the FMV, but do not know what to enter in column (i) that asks for the Method used to determine the FMV?

tuffykeechy — Wed, 17 Mar 2021 01:59:30 GMT

Re: Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Pa...

MaryK4 — Wed, 17 Mar 2021 02:15:49 GMT

The 4 most commonly used methods to determine the FMV:

Cost or selling price.
Sales of comparable assets.
Replacement cost.
Expert opinion.

See Publication 561 (02/2020), Determining the Value of Donated Property.

Re: Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Part I, Line A Column (h) I have entered $800 as the FMV, but do not know what to enter in column (i) that asks for the Method used to determine the FMV?

Mike9241 — Wed, 17 Mar 2021 07:49:00 GMT

not so fast. there are extra steps you must take for a donation of a vehicle valued at more than $500.

Qualified Vehicle Donations
A qualified vehicle is any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane. However, property held by the donor primarily for sale to customers, such as inventory of a car dealer, is not a qualified vehicle.
If you donate a qualified vehicle with a claimed value of more than $500, you cannot claim a deduction unless you attach to Form 8283 a copy of the contemporaneous written acknowledgment you received from the donee organization. The donee organization may use Copy B of Form 1098-C as the acknowledgment. An acknowledgment is considered contemporaneous if the donee organization furnishes it to you no later than 30 days after the:
• Date of the sale, if the donee organization sold the vehicle in an arm's length transaction to an unrelated party; or
• Date of the contribution, if the donee organization will not sell the vehicle before completion of a material improvement or significant intervening use, or the donee organization will give or sell the vehicle to a needy individual for a price significantly below FMV to directly further the organization's charitable purpose of relieving the poor and distressed or underprivileged who need a means of transportation.

For a donated vehicle with a claimed value of more than $500, you can deduct the smaller of the vehicle's FMV on the date of the contribution or the gross proceeds received from the sale of the vehicle, unless an exception applies as explained below. Form 1098-C (or other acknowledgment) will show the gross proceeds from the sale if no exception applies. If the FMV of the vehicle was more than your cost or other basis, you may have to reduce the FMV to figure the deductible amount, as described under Reductions to FMV, earlier.
If any of the following exceptions apply, your deduction is not limited to the gross proceeds received from the sale. Instead, you generally can deduct the vehicle's FMV on the date of the contribution if the donee organization:
• Makes a significant intervening use of the vehicle before transferring it,
• Makes a material improvement to the vehicle before transferring it, or
• Gives or sells the vehicle to a needy individual for a price significantly below FMV to directly further the organization's charitable purpose of relieving the poor and distressed or underprivileged who need a means of transportation.
Form 1098-C (or other acknowledgment) will show if any of these exceptions apply

since the 1098-C or acknowledgment is required you can not e-file unless you use form 8453 to submit the support. the support goes with the 8453 and be sure to read the filing instructions for this form.

https://www.irs.gov/pub/irs-pdf/f8453.pdf

topic Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Part I, Line A Column (h) I have entered $800 as the FMV, but do not know what to enter in column (i) that asks for the Method used to determine the FMV? in Deductions & credits

Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Part I, Line A Column (h) I have entered $800 as the FMV, but do not know what to enter in column (i) that asks for the Method used to determine the FMV?

Re: Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Pa...

Re: Car donation to a charity sold at an auction for $800 (less then FMV) - so on Form 8283 in Part I, Line A Column (h) I have entered $800 as the FMV, but do not know what to enter in column (i) that asks for the Method used to determine the FMV?