Form 8283 Appraisals

If you donate restaurant equipment to a qualified charitable organization, you may be eligible for a tax deduction based on the fair market value of the items you contribute. In order to properly substantiate your deduction, the IRS requires sufficient documentation of the equipment’s value. For higher-value donations, this often means obtaining a Form 8283 Appraisal, which provides a certified assessment of the donated property’s fair market value.

A Form 8283 appraisal is required by the IRS for donations of tangible property, such as restaurant equipment, valued at $5,000 or more. This appraisal must be performed by a qualified appraiser who meets the IRS’s specific education, training, and experience criteria. The completed appraisal is then attached to your tax return for the year in which the donation is made. Failing to obtain a proper appraisal can result in the IRS disallowing the deduction, so compliance is essential.

When it comes to restaurant equipment, determining fair market value involves more than simply estimating replacement cost or reviewing original purchase receipts. A qualified appraiser evaluates several key factors, including the equipment’s age, condition, functionality, maintenance history, and the current demand for similar items in the marketplace. This comprehensive assessment ensures that the valuation is both accurate and defensible in the event of an IRS review.

By securing a certified Form 8283 appraisal, you not only meet IRS documentation requirements but also protect yourself by having credible, professional support for your deduction claim. This can lead to meaningful tax savings while ensuring full compliance with federal tax regulations.

You can view the most recent version of IRS Form 8283 on the IRS website.