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Tax Information for Donors

The donor of library materials is entitled to an income tax deduction in accordance with Internal Revenue Service regulations. These regulations state that the donor is responsible for establishing the fair market value of the donation. The IRS defines the fair market value as the price a willing buyer would pay a willing seller when neither is acting under duress and both are aware of market conditions. The donor must file IRS Form 8283 if he/she claims a deduction for non-cash gifts totaling more than $500 within a calendar year.

According to IRS regulations (Determining the Value of Donated Property, IRS Publication 561), the donor may determine the value of the donation if it totals less than $5,000 within a calendar year. A qualified independent appraiser must establish values greater than $5,000 per year.

The donor is responsible for locating an independent appraiser and for paying appraisal expenses. AMBS does not supply appraisals of donated library materials or pay appraisal expenses. Appraisals must be made before the gift is transferred to the library. The donor’s appraisal expense may be considered a miscellaneous deduction for income tax purposes.

Please check with the Internal Revenue Service and your tax advisor for the most current information on noncash charitable contributions.

Eileen K. Saner, AMBS Library, 3003 Benham Ave., Elkhart, IN 46517
574-296-6233, esaner@ambs.edu
March 12, 2002