The proof for claiming charitable deductions is in the pudding. To claim an itemized deduction on your personal return, you must certain elements of the contributions, according to the regulations. As evidenced by a taxpayer in a new case, Besaw, TC Sum. Op. 2025-7, 7/21/25, just missing one or two of the key ingredients can spoil the deal.
Background: Different recordkeeping rules apply to monetary contributions and gifts of property. For monetary contributions, no deduction is allowed for any donation of cash, check or other monetary gift unless you can provide a bank record or written communication from a qualified charitable organization showing:
- The amount of the contribution;
- The date the contribution was made; and
- The name of the charitable organization.
Furthermore, you must obtain a written acknowledgment from a charity for any gifts of $250 or more. The statement should include the amount of cash or the check; a description of any non-cash property that was contributed; and the value of any goods or services provided.
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If you donate property that has depreciated in value, such as used clothing and furniture, you may deduct the current fair market value (FMV) of the property. If the donated property has appreciated in value, you can generally deduct its FMV if it would have produced a long-term capital gain had you sold it instead (i.e., you’ve owned the property for more than a year). Otherwise, your deduction is limited to your basis in the property.
Finally, additional tax return information is required for certain gifts. For donations of property valued above $500, you must attach to your tax return a written description of the donated property and other relevant information on Form 8283, Noncash Charitable Contributions. If the gift is valued at more than $5,000, you must also obtain an independent appraisal of the donated property and attach a summary to the return.
Facts of the new case: The taxpayer filed a timely joint return for the 2019 tax year. On Schedule A, he claimed an itemized deduction for a noncash charitable contribution of $6,760. He attached a Form 8283 that identified the charitable organizations and included short descriptions of the donations. The form included the names and addresses of the charitable organizations, but not the dates of the donations or the values of the donated items.
In response to a question at trial about why he failed to report this information on Form 8283, the taxpayer said his understanding was that the elements required for noncash charitable contribution deductions included the name and address of the organization and the description of donated property, but nothing about the value of the donated items. But the Tax Court wasn’t swayed. It found it reasonable to require receipts for the donated items that included descriptions of the donated items. Therefore, it denied the deduction.
Lesson to be learned: Make sure that deductions for charitable deductions are supported by all the records and reporting required for a write-off. Don’t leave out any relevant elements.
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